LG Electronics’ initial public offering (IPO) concluded on Thursday, October 9, witnessing a massive demand from all categories of investors. The IPO witnessed a healthy grey market premium (GMP) and positive comments from most analysts.
LG Electronics IPO, which opened on October 7, sailed through on the first day of the bidding itself.
At the end of the third day, the electronics company’s share sale garnered bids for 3,85,32,39,416 shares as against 7,13,34,320 shares on offer, translating into a subscription status of 54.02 times.
The quota for qualified institutional buyers (QIBs) received 166.51 times subscription. The category for non-institutional investors (NIIs) was subscribed 22.44 times, while the portion meant for retail investors and employees attracted 3.54 times and 7.62 times subscription, respectively.
LG Electronics IPO GMP
LG Electronics IPO GMP today stood at ₹328, its highest ever. Earlier, its GMP touched a peak of ₹318, a day prior to the opening. At the prevailing GMP and the upper end of the IPO price band, LG Electronics share price could list at ₹1468, a premium of 28.77%.
LG Electronics shares are expected to make their stock market debut on October 14.
LG Electronics IPO Details
The ₹11,607-crore LG Electronics IPO was priced at ₹1,080 to ₹1,140 per share, valuing the company around ₹77,400 crore at the upper end.
LG Electronics IPO is entirely an offer-for-sale (OFS) of 10.18 crore shares by the South Korea-based parent. Since the IPO is entirely an OFS, no proceeds from the stake sale will be received by the company, but will go to its promoter.
Investors could apply for the IPO in lots of 13 shares, requiring an investment of ₹14,820 by a retailer at the upper end of the price band. The issue had reserved up to 2,10,728 shares for employees offered at a discounted price of ₹108.
After Hyundai last year, LG Electronics is the second South Korean company to list on the Indian stock market.
LG Electronics India manufactures and sells major home appliances and consumer electronics products in India. The company caters to both B2C and B2B customers within India and in international markets.
Its product portfolio includes refrigerators, washing machines, air conditioners, water purifiers, dishwashers, microwave ovens, air purifiers, compressors, televisions, monitors, interactive displays, and information systems.
In addition to product sales, the company also provides installation services, as well as repair and maintenance services for all its offerings.
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