LG Electronics IPO garners 54x subscription on final day; GMP suggests strong listing

New Delhi: The initial public offering of LG Electronics India Ltd received 54.02 times subscription on the final day of bidding on Thursday, driven by overwhelming participation from institutional buyers.

LG Electronics IPO subscription on Day 3

The Rs 11,607-crore IPO received bids for 3,85,33,26,672 shares against 7,13,34,320 shares on offer, according to NSE data.

The portion for Qualified Institutional Buyers (QIBs) got subscribed a huge 166.51 times, while the non-institutional investors quota received 22.44 times subscription. The category for Retail Individual Investors (RIIs) attracted 3.54 times the subscription.

LG Electronics IPO GMP

According to Investorgain, as on October 9, LG Electronics shares are trading at a premium of Rs 360 or 31.58% apiece over the price band of Rs 1,080-1,140 in the unofficial market, up from Rs 288 on Wednesday, indicating a strong IPO listing for the firm on October 14.

If the current grey market trends are sustained, the shares may list flat at around Rs 1,500 per share.

To be sure, the grey market premium is a signal, not a guarantee.

LG Electronics India Ltd on Monday collected Rs 3,475 crore from anchor investors.

LG Electronics IPO structure

The Initial Public Offer (IPO) has a price band of Rs 1,080 to Rs 1,140 per share, valuing the company around Rs 77,400 crore at the upper end.

This is the second South Korean company to tap the Indian stock market, following the listing of Hyundai Motors India Ltd in October last year.

The IPO is entirely an Offer For Sale (OFS) of 10.18 crore shares, representing about 15 per cent stake, by the South Korea-based parent.

Since the public issue is completely an OFS, LG Electronics India will not receive any IPO proceeds. The funds raised will go to the South Korean parent.

About LG Electronics

LG Electronics India is a leading player in major home appliances and consumer electronics. The company's products are sold to both B2C and B2B customers in India and abroad. It also provides installation, repair, and maintenance services for all its products.

The company manufactures and sells products, including washing machines, refrigerators, LED TV panels, inverter air conditioners, and microwaves. It has manufacturing units at Noida, Uttar Pradesh and Pune, Maharashtra.

LG Electronics IPO listing date

LG Electronics India is expected to make its stock market debut on October 14.

Axis Capital, Citigroup Global Markets India, Morgan Stanley India Company, J.P. Morgan India and BofA Securities India are the book-running lead managers to the offering.