Hyundai Motor India shares fell nearly 7% on their trading debut Tuesday after a $3.3 billion initial public offering, the country’s largest-ever by amount raised.

Shares were trading down at 1,842 rupees ($21.91) at 2.30 p.m. local time, from their initial public offering price of 1,960 rupees, according to BSE data.

The automaker had offered 142.19 million shares at a price band of 1,865 Indian rupees ($22.18) to 1,960 rupees. The IPO fetched 278.56 billion rupees, or $3.3 billion.

The company’s IPO, which opened on Oct. 15 and closed on Oct. 17, was oversubscribed by more than two times, according to Reuters. This is the first IPO for a unit of the South Korean automaker outside South Korea.

Speaking to CNBC’s “Capital Connection,” Kranthi Bathini, director of equity strategy at Wealthmills Securities, said as this was a “fully subscribed and also fully priced in IPO, so there is nothing much left on the table for the investors.”

However, looking at the fundamentals and valuations of Hyundai Motor India, “it is a better bet for the medium to longer term than the in the short term,” he added.

Bathini also pointed out that unlike other automakers, Hyundai has been in the Indian market for about three decades, and the company has “understood India’s policy making,” as well as Indian drivers and consumers. Hyundai portfolio was “robust” for the Indian market, he added.

Unlike a traditional IPO, in which a firm sells fresh shares, Hyundai Motor India’s IPO was an offer for sale, where its parent Hyundai Motor Company sold its shares.

The company’s stock started trading on the National Stock Exchange as well as the BSE on Tuesday.

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 expected 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.