Summary of this article
LG Electronics IPO subscribed 104% on Day 1
QIB: 49%; NII: 231%; Retail: 81%; Employee: 189%
LG Electronics IPO stood at Rs 330 per share, indicating a listing gain of 28.95%
The initial public offering (IPO) of LG Electronics, which opened for public subscription on October 7, got fully subscribed on the first day of bidding, receiving 1.04 times subscription on the shares on offer. The grey market premium (GMP) of the LG Electronics IPO, meanwhile, more than doubled over the last week.
Here’s a look at LG Electronics IPO GMP, subscription status, and other key details.
LG Electronics IPO Subscription Status
As of 5:00 PM, the qualified institutional buyer (QIB) category received 49 per cent bidding, the non-institutional investor (NII) quota was subscribed 2.31 times or 231 per cent, and the retail investor category was booked 81 per cent. The quota reserved for employees of the company was booked 1.89 times, or 189 per cent.
LG Electronics IPO Details
LG Electronics IPO Issue Size
The South Korean multi-nantional electronics appliance manufacturer and seller aims to raise Rs 11,607 crore via its IPO, which is entirely offer for sale of 101.81 million equity shares. That means, the funds will go to the selling promoters and will not be counted as net proceeds.
LG Electronics IPO Price Band
The shares of LG Electronics are being offered in the range Rs 1,080 to Rs 1,140 per share in lot size of 13 shares. Given that, the miniumum amount required by retail investors to apply for the IPO is Rs 14,820 for one lot.
LG Electronics IPO Allotment Date
The basis of allotment of shares of the company is expected to be finalised by October 10, and shares are scheduled to tentatively list on both the bourses, NSE and BSE, on October 14.
LG Electronics IPO BRLMs, Registrar
Axis Capital, Citigroup Global Markets India, Morgan Stanley India Company, JP Morgan India, and BofA Securities India are the book-running lead managers of LG Electronics' IPO, and KFin Technologies is the registrar.
LG Electronics IPO Objective
LG Electronics will not receive any proceeds from the IPO since it is an entirely an offer for sale issue.
LG Electronics IPO Selling Shareholders
As per the Red Herring Prospectus, LG Electronics Inc. holds all 678.77 crore equity shares, representing 100 per cent of the company’s pre-offer equity capital. After the public issue, its stake is expected to come down to around 85 per cent of the post-offer paid-up equity capital.
LG Electronics IPO GMP
According to multiple websites that track grey market activities, the LG Electronics IPO is commanding a healthy GMP of Rs 330 per share. The GMP saw an increase of nearly 128 per cent over the last week, growing from Rs 145 On October 1, to now Rs 330, as of October 7.
LG Electronics IPO Expected Listing Share Price
Given the current GMP of Rs 330, and the upper band of the issue price, Rs 1,140 apiece, LG Electronics IPO is expected to list at Rs 1,470 per share, showing a listing gain of 28.95 per cent.
LG Electronics Company Profile
LG Electronics India Ltd was set up in 1997 to manufacture and sell home appliances and consumer electronics products, except mobile phones. According to its RHP, the company serves both retail and business customers in India and overseas. It also provides installation, repair, and maintenance services. Its main businesses are home appliances, air solutions, and home entertainment.
LG India has two factories — one in Noida and another in Pune. It operates two central and 23 regional distribution centers, along with 51 branch offices. Around 30,800 sub-dealers sell its products across India.
