LG Electronics IPO subscribed over 5x on final day
What's the story
The initial public offering (IPO) of LG Electronics India Limited, a leading player in home appliances and consumer electronics, is open for bidding until today. The company has set the IPO price band at ₹1,080 to ₹1,140 per equity share. It hopes to raise ₹11,607.01 crore from this public issue which is entirely an offer for sale (OFS). At the time of writing, the issue was subscribed over 5x, with non-institutional investors buying 13.7 times their quota.
Market response
GMP sees marginal decline to ₹298
As of October 9, the Grey Market Premium (GMP) for LG Electronics' IPO stood at ₹298. This is a ₹14 drop from yesterday's figure of ₹312. The decline is attributed to profit booking triggers in the secondary market. As of 12pm, the public issue was subscribed 5 times overall with retail and NII portions subscribed 2.5 times and 13.7 times, respectively, while QIB portion was subscribed to 2.7 times. Notably, employees had bid over 5.3 times their quota.
Analyst views
Brokerage firms recommend investors to subscribe to the issue
Sharekhan has given a 'subscribe' tag to the book build issue, citing LG Electronics' market leadership in home appliances and consumer electronics. Ventura Securities also advised investors to apply for the public issue despite it being an entirely OFS. They highlighted the company's consistent revenue growth and stable balance sheet, supported by its parent company.
Important dates
Key details of the IPO
The likely allotment date for the LG Electronics IPO is October 10, while its listing date is expected to be October 14. KFin Technologies Ltd is the official registrar of this public issue. Morgan Stanley India, J.P. Morgan India, Axis Capital, BofA Securities and Citigroup Global Markets India are the book running lead managers for the IPO.