LG Electronics IPO listing: Mirroring the bumper demand for its initial public offering (IPO), LG Electronics’ shares’ market listing was an equally spectacular show, with the scrip debuting at a premium of up to 50% on Tuesday, October 14.
LG Electronics share price got listed at ₹1715 on the BSE, a premium of ₹575 or 50.44%, as against the issue price of ₹1140. Meanwhile, on the National Stock Exchange (NSE), LG Electronics’ share price debuted at a premium of 50.01% at ₹1,710.10.
LG Electronics IPO listing today beat expectations, as signalled by its grey market premium (GMP). Ahead of the stock market debut, LG Electronics shares traded at ₹1562, signalling a listing premium of 37%.
How to trade LG Electronics shares?
Domestic brokerage Motilal Oswal Financial Services initiated coverage of LG Electronics shares earlier today, ahead of the listing, with a bullish view. MOSL believes LG due to its leadership position across key product categories is well placed to capitalize on the fast growing consumer electronics market in India.
It assigned a ‘Buy’ rating, with a share price target of ₹1,800 to LG Electronics.
“We expect LGEIL to trade at higher multiples, given the strong return ratios, higher OCF conversion, a strategic focus on localization, targeted growth in high-margin B2B and AMC revenues, and a leadership position across key product categories,” the brokerage opined.
LG Electronics IPO Details
LG Electronics’ ₹11,607 crore IPO is also the most subscribed public issue in the Indian stock market after receiving bids worth nearly ₹4.5 lakh crore. With this feat, it beat the previous record of ₹3.2 lakh crore held by Bajaj Housing Finance.
Overall, the IPO received bids for 3,85,33,26,672 shares as against 7,13,34,320, translating into bids of 54.02 times.
The portion for qualified institutional buyers (QIBs) was 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 subscription.
The LG Electronics IPO price band was fixed at ₹1,080 to ₹1,140 per share, pegging the company’s valuation at ₹77,400 crore at the upper end. Investors could apply for the IPO in lots of 13 shares.
Since the IPO is entirely an offer for sale of 10.18 crore shares, the proceeds will entirely go to the promoter selling shareholder and will not be received by the company.
LG Electronics is the second South Korean company to list on the Indian stock market after Hyundai, which launched the biggest Indian IPO in history last year.
LG Electronics India is a leading home appliances and consumer electronics seller in India. 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.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
