LG Electronics India IPO Listing Date And Latest GMP Ahead Of Market Debut
Shares of LG Electronics India Limited will be in focus as investors await the debut of one of the largest consumer electronics companies on the stock market this week. LG Electronics India created history after it became the first initial public offering (IPO) in India to cross the Rs 4 lakh crore-mark in total subscription value.
Share Allotment Status and Listing Date
The share allotment status for the LG Electronics India IPO was finalised on Friday, October 10. Successful bidders can expect the shares to be credited to their demat accounts on Monday, October 13. The three-day public issue received bidding for 385 crore shares against 7.13 crore shares on offer, with the overall subscription of 54.02 times. The total bid amount stood at Rs 4.4 lakh crore, making it the most subscribed IPO in terms of value.
IPO Details and Grey Market Premium (GMP)
One of the biggest IPOs in India’s consumer electronics market was looking to raise Rs 813.07 crore through a book-built issue. The grey market premium for the mainboard issue has been topping the ‘Business and Finance’ trending charts since last week, indicating a huge interest among private market investors. The grey market premium for the LG Electronics IPO has shown consistent gains since the IPO opened for subscription on October 7.
For more information on how to invest in IPOs, check out our guide on how to invest in IPOs. Additionally, understanding the IPO process can help you make informed decisions.
Listing Date and Expected Gain
Shares of LG Electronics India are expected to list on NSE and BSE on Tuesday, October 14. The grey market premium for the LG Electronics IPO was Rs 392 as of 11:54 a.m. on October 13. With an upper price band of Rs 1140, the estimated listing price is Rs 1,532. This means that the unlisted shares of LG Electronics’ IPO were trading at Rs 1,532 per share in the private market, indicating an expected gain of up to 34.39% per share.
The highest GMP recorded for the IPO was Rs 395 when the share allotment status was finalised on October 10. The GMP for the public issue has been gaining rapidly. The grey market premium for the IPO was as low as Rs 145 before rising to Rs 250 on October 5. It gained further to Rs 300 on Wednesday before closing at Rs 395 on Friday.
IPO Structure and Bankers
The IPO is a book-built issue comprising entirely an offer-for-sale component of up to 10,18,15,859 or more than 10 crore equity shares at a face value of Rs 10 per share. Through the IPO, the South Korean parent LG Electronics Inc. will offload 10.2 crore shares. The price band for the IPO was set between Rs 1080 to Rs 1140 per share.
Of the 7,13,34,320 shares on offer, 2,03,21,026 are reserved for QIB’s, 1,52,40,770 are reserved for NII’s and 3,55,61,796 are reserved for Retail investors. Morgan Stanley India Co., JPMorgan India Pvt., Axis Capital Ltd., BofA Securities India Ltd., and Citigroup Global Markets India Pvt. are the bankers for the IPO. Kfin Technologies Ltd. is the registrar of the issue.
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Disclaimer and Investment Advice
Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids. It’s also essential to understand the risks of investing in IPOs and how to evaluate IPOs before making any investment decisions.
