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The initial public offering of LG Electronics India Ltd. has been subscribed more than 17 times on the final day of bidding so far, with the grey market premium indicating a listing-day pop.
Investors bid for 125.77 crore shares against 7.13 crore shares on offer in the LG India IPO, translating into a subscription of 17.63 times, according to data on the website of the National Stock Exchange of India on Wednesday. The IPO has so far raised 1,43,385.38 crore from 55,75,394 applications.
LG Electronics IPO: Subscription Status
QIB portion: 41.80 times (84.93 crore shares vs 2.03 crore shares)
NII portion: 19.60 times (29.87 crore shares vs 1.52 crore shares)
Retail portion: 3.05 times (10,82 crore shares vs 3.55 crore shares)
Employees: 6.38 times (13.44 lakh shares vs 2.10 lakh shares)
The LG Electronics IPO was fully subscribed on the first day itself and garnered 3.3 times subscription on the second day. On Monday, the company raised ₹3,474.90 crore from anchor investors.
LG Electronics IPO GMP
According to Investorgain, the LG Electronics India enjoyed a GMP of ₹328 over and above the IPO price band of ₹ ₹1,080-1,140 apiece. That indicates a listing-day premium of 28.77%.
To be sure, the grey market premium is a signal, not a guarantee. It reflects what traders are willing to pay for an IPO-bound stock in the unofficial market—it doesn’t guarantee listing-day gains. The GMP can swing dramatically as it’s detached from the fundamentals of a stock.
LG Electronics IPO Details
The LG India IPO, a pure offer-for-sale by its South Korean parent, is offering 10.18 crore shares in a price band of ₹1,080-1,140 apiece to raise as much as ₹11,607 crore. The lot size is 13 shares, which translates into a minimum investment of ₹14,820 at the upper end of price band.
The valuation of the company is seen at ₹77,800-80,000 crore, with a price-to-earnings ratio of 47 times, which is slightly richer when compared to rivals Voltas Ltd., Havells India Ltd. and Blue Star Ltd.
The LG India IPO is open for subscription from 7-9 October. The allotment date is 10 October. The listing date is 14 October.
For more details, click here.
LG Electronics IPO Review
Here's a look at what analysts had to say about the LG India IPO:
Anand Rathi has rated the IPO “Subscribe”, pointing to LG India’s consistent financial performance and the strength of its parent brand. They believe LG’s margins and profitability make it a good bet in India’s growing home-appliance/consumer durables sector.
ICICI Securities has issued a “Subscribe” recommendation, citing that LG can leverage its strong brand, technological know-how, and execution capabilities. They note the company’s “cash-rich balance sheet”, superior margins, and return ratios as supportive of its valuation.
Choice Broking recommends a “Buy/Subscribe” stance. They point out that at the upper band, LG is valued at a P/E of ~ 38X (based on trailing earnings) and EV/Sales of ~ 3.0X, which they consider reasonable relative to peers, given LG’s market leadership, strong brand, and growth potential.
EquityMaster cautions that the IPO is purely an OFS, and that near-term listing gains may be capped. They acknowledge that LG’s brand, business scale, and growth trajectory give it strong potential over a longer time horizon.
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Geojit Research notes that while the IPO is priced at ~35X FY25 earnings, the valuation is justified by LG’s leadership in categories, high ROE, and its wide distribution footprint. They recommend the issue more for medium-to-long term investors.
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