Hyundai India shares drop 6% on market debut after record IPO

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Shares of Hyundai Motor India dropped as much as 6% in their market debut on Tuesday, after a tepid response from retail investors to the pricing of the countrys largest ever initial public offering.. ..

ET), giving the company a valuation of 1.53 trillion rupees ($18.2 billion).. . Hyundai, Indias No. 2 carmaker with a market share of 15%, was targeting a valuation of $19 billion through the IPO.. ..

Shares of Indian rivals have also slipped in recent weeks as car salesslowafter two years of record highs, with customers delaying purchases on worries about stubborn inflation.. . Hyundais issue has been stiffly priced and that seems to be weighing down on its listing as well, said Arun Kejriwal, founder of Kejriwal Research.. . Besides, the volumes seen so far are driven only by institutional investors, and is rather poor for an IPO of Hyundais size...

. Tuesdays listing in Mumbai is Hyundai Motorsfirst debut outside its home market of South Korea and comes at a time when Indias equity markets have risen sharply.. . . With competition from domestic rivals Tata Motorsand Mahindra & Mahindra, Hyundai Motor plans to use proceeds from its sale of a stake of 17.5% in the Indian unit to invest in research and launch new products.. . Hyundai Motor will play a crucial role in Hyundai Motor Indias long-term growth through our collaboration in R&D, design, manufacturing, the Korean automakers CEO, Jaehoon Chang, said at a listing ceremony in Mumbai.. ..

Seven of Indias 10 largest IPOs, including Hyundai India, reported listing day losses ranging from 5% to 27%, according to data from Dealogic.. . While Hyundais market valuation is much smaller than Indian market leader Maruti Suzukis$45 billion, analysts have expressed concerns over the narrower gap in their price-to-earnings (P/E) ratios.. ..

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