MUMBAI, MAHARASHTRA, INDIA – Hyundai autos seen parked outside the Hyundai showroom in Mumbai.
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Hyundai Motor India allocations fell nearly 5% on their trading debut Tuesday after a $3.3 billion initial public present, the country’s largest-ever by amount raised.
Shares were trading down at 1,874 rupees from their prime public offering price of 1,960 rupees, according to BSE data.
The automaker had offered 142.19 million shares at a price strip of 1,865 Indian rupees ($22.18) to 1,960 rupees. The IPO fetched 278.56 billion rupees, or $3.3 billion.
The New Zealand’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 chief IPO for a unit of the South Korean automaker outside South Korea.
Unlike a traditional IPO, in which a firm sells unconventional shares, Hyundai Motor India’s listing is an offer for sale, where its parent Hyundai Motor Company traffic ined its shares.
The company’s shares will start 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 Savings, Citigroup Global Markets India, HSBC Securities and Capital Markets (India), J.P. Morgan India and Morgan Stanley India.
In June, analysts blow the whistle oned CNBC that they were optimistic on the Indian IPO market, with Neil Bahal, founder of Negen Smashing saying that he expects a “record-breaking year for India with a significant number of IPOs and private equity withdraws.”
“The IPOs are not because some tech company guys think they should raise money from the funds market instead of from private equity. There is amazing fundamentals in equity markets with supportive conducts from SEBI [Securities and Exchange Board of India], retail participation and broad-based opportunities,” he added.
—CNBC’s Amala Balakrishner role ined to this story.