The market capitalization of LG Electronics India was higher than that of its parent firm since the shares of the subsidiary rose by more than 45 percent on the market launch on Tuesday.
The market cap of the Indian unit was 1.14 trillion rupees ($12.83 billion) at 11.15 a.m. local time (1.45 a.m. ET), and its parent was worth 13.84 trillion Korean won ($9.68 billion).
The shares of the company rose to 50 percent on open, following its first public issue that recorded the best demand of an Indian IPO since 2008, mainly by institutional investors. Stocks had previously been trading 45 percent higher.
The IPO was valued at the highest point of the 1,080 rupees to 1,140 rupees apiece range, selling at 116 billion rupees ($1.3 billion), and was oversubscribed 54 times, with bids valued at approximately 4.4 trillion rupees or approximately $50 billion.
The Managing Director of PRIME Database, Pranav Haldea, said on CNBC that it was the highest-subscribed major Indian IPO since Reliance Power was listed in 2008.
It experienced huge demand among the qualified institutional buyers who bid 166 times their quota; therefore, the portion of retail investors was oversubscribed 3.55 times.
The IPO was designed as an offer of sale; no new shares were issued, with parent LG Electronics selling 101.8 million shares.
It was handled by a consortium of international and domestic bookrunners such as Morgan Stanley, J.P. Morgan, Axis Capital, BofA Securities, and Citigroup Global Markets India.
Thus, the shares started trading on the National Stock Exchange of India and on the BSE on Tuesday.
