MUMBAI, MAHARASHTRA, INDIA – Hyundai cars seen parked outside the Hyundai showroom in Mumbai.
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Hyundai Motor India shares fell more than 5% on their trading debut Tuesday after a $3.3 billion initial public offering, the country’s largest-ever by amount raised.
Shares were trading down at 1,860 rupees from their initial public offering price of 1,960 rupees, according to BSE data.
The automaker had offered 142.19 million shares at a price band of 1,865 Indian rupees ($22.18) to 1,960 rupees. The IPO fetched 278.56 billion rupees, or $3.3 billion.
The company’s IPO, which opened on Oct. 15 and closed on Oct. 17, was oversubscribed by more than two times, according to Reuters.
This is the first IPO for a unit of the South Korean automaker outside South Korea.
Unlike a traditional IPO, in which a firm sells fresh shares, Hyundai Motor India’s listing is an offer for sale, where its parent Hyundai Motor Company sold its shares.
The company’s shares started trading on the New Delhi-based NSE as well as the Mumbai-based BSE.
The lead bookrunners of Hyundai India’s IPO were Kotak Mahindra Capital, Citigroup Global Markets India, HSBC Securities and Capital Markets (India), J.P. Morgan India and Morgan Stanley India.
In June, analysts told CNBC that they were optimistic on the Indian IPO market, with Neil Bahal, founder of Negen Capital saying that he expects a “record-breaking year for India with a significant number of IPOs and private equity exits.”
“The IPOs are not because some tech company guys think they should raise money from the stock market instead of from private equity. There is amazing fundamentals in equity markets with supportive policies from SEBI [Securities and Exchange Board of India], retail participation and broad-based opportunities,” he added.
—CNBC’s Amala Balakrishner contributed to this story.
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