[hotlink]Hyundai Motor[/hotlink] had a lacklustre Indian market debut on Tuesday after raising $3.3 billion in the country’s biggest-ever initial public offering, with shares down nearly five percent from their issue price in early trade.A booming stock market in the world’s fifth-largest economy has stoked an IPO frenzy over the last two years, with start-ups and established companies alike scooping up billions of dollars from investors.The IPO had valued Hyundai‘s India unit, the country’s second-largest car maker by sales, at about $19 billion, with the South Korean parent firm putting up a 17.5 percent stake for purchase.Shares of the automaker fell in the first morning of trade to 1,870 rupees ($22.34), down more than 4.5 percent from their issue price of 1,960 rupees.“Our journey in India began in 1996… and now, 28 years later, we are going public by launching India’s largest IPO in history,” Hyundai Motor Group executive chair Euisun Chung said at the listing ceremony in Mumbai.“From the beginning, we knew that India was the future,” he added. “Today’s IPO… demonstrates our commitment to this great nation.”While shares in Hyundai Motor India’s IPO were oversubscribed more than two times, retail investors snapped up only half the tranche reserved for them.Some analysts had noted that the company’s valuation could limit listing gains.Mihir Manek of Aditya Birla Capital said prior to the listing that while Hyundai’s outlook in India “continues to be strong”, the offering was at a “rich valuation”.Other concerns that dogged the IPO included a decline in urban consumer sentiment hitting India’s automobile sales.Retail vehicle sales fell by more than nine percent in September, with the Federation of Automobile Dealers Associations saying car yards had reached “historically high inventory levels of 80-85 days”.Hyundai made a splash in India during the late 1990s and early 2000s with its popular small cars and sedans.The automaker has more recently seen success with larger models, including strong demand from Indian customers for its sports-utility vehicle the Creta.It is one of the few foreign car companies to have left a mark on the world’s most populous country, with US rivals Ford and General Motors having struggled in their efforts to gain a market toehold.Hyundai Motor India managing director Unsoo Kim told reporters two weeks ago that the South Korean firm would use the IPO capital to invest in “new products” and research and development.
