Hyundai Motor India’s shares dropped 7% on their trading debut Tuesday after a $3.3 billion IPO, the largest in India.
Shares closed at 1,819 rupees ($21.63), down from the IPO price of 1,960 rupees, according to BSE data.
The automaker offered 142.19 million shares at a price range of 1,865 to 1,960 rupees. The IPO raised 278.56 billion rupees, or $3.3 billion.
The IPO, open from October 15 to 17, was more than twice oversubscribed, as reported by Reuters. It marks the first IPO for a Hyundai unit outside South Korea.
Kranthi Bathini from Wealthmills Securities told CNBC that the IPO was fully priced, offering limited short-term potential for investors. However, he believes Hyundai Motor India is a better long-term investment due to its strong market understanding in India.
Unlike traditional IPOs where new shares are sold, Hyundai’s IPO was an offer for sale, with shares sold by its parent company.
The stock started trading on the National Stock Exchange and the BSE on Tuesday. The lead bookrunners included Kotak Mahindra, Citigroup, HSBC, J.P. Morgan, and Morgan Stanley.
Analysts predict a strong IPO market in India, citing solid fundamentals and supportive policies from SEBI, according to CNBC’s Neil Bahal.
—CNBC’s Amala Balakrishner contributed to this story.
`
