IPO wrap, Oct 7: LG Electronics sees 104% subscription, WeWork India fully booked on last day

The primary market witnessed a bit of a lull on Tuesday, October 7, with just three mainboard IPOs open for subscription.

Among these, one issue, LG Electronics India Limited started its bidding process today, and while Tata Capital was on its second day of bidding, WeWork India Management concluded its bidding process.

Here’s a brief look at key IPO developments on Tuesday, October 7:

WeWork India Management

Co-working space operator WeWork India Management Ltd's initial public offering (IPO) closed for subscription on Tuesday, with the offer being fully booked and fully subscribed on its last day.

The IPO was subscribed 1.15 times on its final day of bidding, receiving 29,268,328 bids against 25,489,748 reserved shares.

• Qualified Institutional Buyers (QIBs): 1.79x

• Non-institutional Investors: 0.23x

• Retail Individual Investors (RIIs): 0.61x

The ₹3,000 crore initial share sale, entirely an offer for sale (OFS) of 4.63 crore shares, will see promoter group entity Embassy Buildcon LLP and investor 1 Ariel Way Tenant Ltd (part of WeWork Global) offload their stakes.

A lot consists of 23 shares and in multiples thereof.

Founded in 2017, WeWork India Management operates under an exclusive licence of the WeWork brand. It is promoted by Bengaluru-based real estate developer Embassy Group.

The basis of allotment of the WeWork India IPO is expected to be finalised on Wednesday, October 8.

LG Electronics India

The mega-IPO of LG Electronics India Ltd, the Indian unit of South Korea's LG conglomerate, has been subscribed 1.04% on the first day of bidding. The issue, which will end on October 9, has set a price band of ₹1,080 to ₹1,140 per share.

The IPO has received 74,473,685 bids against 71,334,320 reserved shares.

• Qualified Institutional Buyers (QIBs): 0.49x

• Non-institutional Investors: 2.31x

• Retail Individual Investors (RIIs): 0.81x

The component meant for non-institutional investors secured a 1.90 times subscription, while the category for retail investors got a 75% subscription. The quota for qualified institutional investors was also 49% booked.

The ₹11,607.01 crore IPO, which is entirely an offer-for-sale (OFS) of 101,815,859 shares, represents about a 15% stake by the South Korea-based parent. At the upper price band, the company is valued around ₹77,400 crore.

The minimum application size for retail investors is 13 shares and in multiples thereof.

Tata Capital

The initial public offering of Tata Capital has been subscribed 0.75 times on the second day of bidding. It had received 249,633,260 bids against 33,343,6996 reserved shares.

The issue, which will conclude on October 8, has kept a price band of ₹310 to ₹326 per share. A lot consists of 46 shares.

• Qualified Institutional Buyers (QIBs): 0.86x

• Non-institutional Investors: 0.76x

• Retail Individual Investors (RIIs): 0.67x

The ₹15,511.87 crore initial public offering comprises a fresh issuance of 21 crore shares, totalling ₹6,846 crore, and an offer for sale of 475,824,280 shares worth ₹8,665.87 crore by promoter Tata Sons Pvt Ltd and investor International Finance Corporation.

The company proposes to utilise the net proceeds from the fresh issue to augment its Tier-1 capital base to meet future capital needs, including onwards lending.

Tata Capital, the financial services unit of the Tata Group, has a portfolio of over 25 lending products, catering to a diverse customer base, including salaried and self-employed individuals, small businesses, entrepreneurs, SMEs, and corporates.