Mumbai, Maharashtra, India – Hyundai cars parked outside a Hyundai showroom in Mumbai.
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Hyundai Motor India is set to start trading on the country’s two major stock markets on Tuesday, following its $3.3 billion initial public offering, the country’s largest ever.
The automaker provides 142.19 million shares, priced in the range of INR 1,865 ($22.18) to INR 1,960. At the upper end of the price band, the entire issue is valued at Rs 27,856 crore, or $3.3 billion.
Its initial public offering has been oversubscribed by more than two times, according to the company Reutersthe stock was priced at a maximum of Rs 1,960. The IPO started on October 15th and ended on October 17th.
This is the first IPO by a unit of the South Korean automaker outside South Korea.
Unlike a traditional initial public offering in which a company sells new shares, Hyundai Motor India’s listing is an offer for sale, in which parent Hyundai Motor Co. sells its shares.
The company’s shares will start trading on the NSE in New Delhi and the BSE in Mumbai.
Leading bookrunners for the Modern India IPO include Kotak Mahindra Capital, Citigroup Global Markets India, HSBC Securities and Capital Markets (India), JPMorgan India and Morgan Stanley India.
June, Analysts told CNBC They are optimistic about the Indian IPO market. Neil Bahal, founder of Negen Capital, said that he expects “India will have a record-breaking year with a large number of IPOs and private equity exits.”
“The IPO is not because some technology companies think they should raise money from the stock market instead of private equity. The fundamentals of the stock market are amazing, SEBI (Securities and Exchange Board of India) supportive policies, retail participation and broad-based investment based on opportunities,” he added.
—CNBC’s Amala Balakrishner contributed to this article.
