Because LG’s IPO was so well-liked, it became the most oversubscribed billion-dollar offering in the nation in seventeen years.
Tata Capital Ltd. just concluded the largest IPO in India this year, but it turns out that the banks made more money on a lesser transaction with LG Electronics India Ltd.
Both prospectuses state that Tata paid Rs 159 crore in fees to ten arrangers for its $1.7 billion sale, while LG paid around Rs 226 crore ($26 million) to five banks for its $1.3 billion IPO. For each of LG’s banks, it amounts to almost Rs 45 crore, which is over three times the average for Tata.
Both businesses started trading in Mumbai this week, with LG making India’s highest debut for a transaction of that magnitude with a 48% increase and Tata increasing 1.4% on its first day of trade. Due to its widespread popularity, LG’s initial public offering (IPO) became the most oversubscribed billion-dollar offering in the nation in 17 years.
Axis Bank Ltd., Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co., and Morgan Stanley were the arrangers for LG.
Axis, BNP Paribas SA, Citigroup, HDFC Bank Ltd., HSBC Holdings Plc, ICICI Securities, IIFL Capital Ltd., JPMorgan, Kotak Mahindra Co., and SBI Capital Markets Ltd. were among the legions of sponsors that backed Tata.