LG Electronics India’s shares surged 50% on their market debut Tuesday, after the company’s initial public offering saw the strongest demand for an Indian IPO since 2008, led by institutional investors.
Its shares opened at 1,710 rupees. The IPO was priced at the top end of the 1,080 rupee to 1,140 rupee apiece band, fetching 116 billion rupees ($1.3 billion), and was oversubscribed more than 54 times, attracting bids worth about 4.4 trillion rupees or nearly $50 billion, exchange data revealed.
This was the most heavily subscribed major Indian IPO since Reliance Power’s listing in 2008, PRIME Database’s Pranav Haldea told CNBC. It saw massive demand from qualified institutional buyers, who bid 166 times their allotted portion. Retail investor portion was oversubscribed 3.55 times.
The IPO was structured as an offer for sale — no new shares were issued — with parent LG Electronics selling 101.8 million shares. It was managed by a consortium of international and domestic bookrunners, including Morgan Stanley, J.P. Morgan, Axis Capital, BofA Securities, and Citigroup Global Markets India.
Shares began trading Tuesday on the National Stock Exchange of India as well as the BSE.
