[ad_1]
MUMBAI, MAHARASHTRA, INDIA – Hyundai cars seen parked outside the Hyundai showroom in Mumbai.
Sopa Images | Lightrocket | Getty Images
Hyundai Motor India was set to start trading Tuesday in the country’s two major stock markets after a $3.3 billion initial public offering, the country’s largest-ever by amount raised.
The automaker had offered 142.19 million shares at a price band of 1,865 Indian rupees ($22.18) to 1,960 rupees. Based on the top end of the price band, the entire offering is valued at 278.56 billion rupees, or $3.3 billion.
The company has seen its initial public offering oversubscribed by over two times, according to Reuters, pricing the shares at the top end at 1,960 rupees. The IPO opened on Oct. 15 and closed on Oct. 17.
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 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 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.
[ad_2]
Source link
