LG Electronics India IPO: Home Appliance Maker’s Shares Make Strong Debut With 50% Gains On Bourses

LG Electronics India IPO Listing Price: LG Electronics India Ltd shares made their debut on the NSE and BSE on October 14. Shares of the home appliance maker made a strong debut on the exchanges. LG Electronics India shares listed with over 50 per cent premium compared to the issue price.

On the NSE, LG Electronics India shares made their debut at Rs 1,710.1 per share with gains of 50 per cent against the issue price of Rs 1140 per share. Shares of LG Electronics India listed at Rs 1715 apiece with 50.43 per cent gains on the BSE.

Applicants who applied for LG Electronics India IPO in the retail category and were allotted a minimum of one lot or 13 shares would have made a profit of at least Rs 7,411.3 (Rs 1710- Rs 1140 x 13). At the time of writing 9.37 lakh shares of LG Electronics India traded hands on the BSE. LG Electronics India’s total market capitalisation stood at Rs 1,16,409.47 crore.

LG Electronics India IPO: Details

LG Electronics India Ltd raised Rs 11,607.01 crore through its public issue. LG Electronics India IPO consisted of an offer-for-sale of 101.8 shares. LG Electronics India IPO price band was set between Rs 1080 and Rs 1140 per share.

The minimum lot size for application for retail investors was fixed at 1 lot comprising 13 shares, which aggregated to an investment of Rs 14,820. LG Electronics India IPO saw strong demand in its three-day subscription window. LG Electronics India IPO was subscribed 54.02 times across applicant categories. As many as 3.85 billion shares of LG Electronics India were bid for against the 71.3 million shares offered for subscription.

LG Electronics India IPO: Subscription Update

In the three-day bidding window, qualified institutional buyers booked LG Electronics India IPO 166.51 times. Non-institutional investors booked their quota in LG Electronics IPO 22.45 times, retail investors booked their quota 3.55 times and employees of the company booked their quota 7.62 times.

LG Electronics India IPO: Objective

LG Electronics India Ltd will not receive the proceeds of the public issue. The proceeds of LG Electronics India Ltd will go to the selling shareholders who participated in the offer-for-sale. The company mentioned in its red-herring prospectus (RHP) that it seeks to benefit from the listing of its shares on the exchanges.

LG Electronics India: Business Model

LG Electronics India is engaged in manufacturing, selling and servicing a diverse range of home appliances and consumer electronics. LG Electronics India operates in two primary segments: Home Appliances and Air Solutions, and Home Entertainment. The company caters to both business-to-consumer (B2C) and business-to-business (B2B) markets.

LG Electronics India: Peers

Some of LG Electronics India’s major peers include Havells India, Voltas, Whirlpool of India and Blue Star. LG Electronics also competes with other smaller players which operate in segments such as air conditioners, refrigerators, washing machines, and other consumer durables.

At the time of writing, LG Electronics India shares traded at Rs 1,677.3 apiece down by 2.05 per cent on the NSE. LG Electronics India shares traded at Rs 1688.05 apiece down by 1.57 per cent on the BSE.