Hyundai Motor India shares plunge in weak trading debut after record IPO

Hyundai Motor India's IPO debuted poorly, with shares falling over 1% from the issue price, despite raising $3.27 billion, marking the largest IPO in the country.

A Hyundai car is parked at a stockyard in India on Oct. 8. [YONHAP/REUTERS]

Hyundai Motor India made a weak stock market debut on Tuesday, with shares slipping more than 1 percent, following the country’s largest initial public offering (IPO) yet.

The automaker's share price was trading at 1,908.80 rupees ($22.70), as of 2:20 p.m. in Korean time, and 10:50 a.m. in Indian time, compared to its issue price of 1,960 rupees, on India's two leading stock exchanges, the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE).

The stock hit a low of 1,844.65 rupees within the first 30 minutes of trading, down 4.9 percent from its list price.

The company initially offered a total of 142,194,700 shares, accounting for 17.5 percent of its total shares, with no fresh issue component.

At the issue price, the carmaker has raised $3.27 billion, the biggest IPO in the country.

Hyundai Motor India is the second carmaker to be listed in the country, and the first overseas IPO by a Hyundai Motor Group company. India is the world's third-largest automotive market, following China and the United States.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]