LG Electronics India's market cap overtakes parent company's as shares surge 45% on debut

Key Points

• LG Electronics India's market cap surpassed that of its parent company after the subsidiary's shares soared on debut.
• The IPO was priced at the top end of the 1,080 to 1,140 rupee band, fetching 116 billion rupees ($1.3 billion).
• This is the most heavily subscribed major Indian IPO since Reliance Power's listing in 2008, according to PRIME Database.

LG Electronics India's market cap surpassed that of its parent company after the subsidiary's shares surged over 45% on market debut Tuesday.

The Indian unit's market cap stood at 1.14 trillion rupees ($12.83 billion) as of 11.15 a.m. local time (1.45 a.m. ET), while its parent company's valuation was 13.84 trillion Korean won ($9.68 billion).

The company's shares surged as much as 50% on open, after its initial public offering saw the strongest demand for an Indian IPO since 2008, led by institutional investors. Shares were last trading 45% higher.

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.