LG Electronics India IPO subscribed 19% so far on day 1; check price band, lot size, timeline & key details

LG Electronics India IPO: The mega-initial public offering of LG Electronics India Ltd, the Indian unit of South Korea's LG conglomerate, opened for subscription on Tuesday, October 7. The issue, which will end on October 9, has set a price band of ₹1,080 to ₹1,140 per share.

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

Since there is no fresh issue component, LG Electronics India Ltd will not get any issue proceeds. The funds generated will go to the promoter.

LG Electronics India IPO day 1: Subscription status

The IPO received bids for 2,64,83,782 shares against 7,13,34,320 shares on offer, translating to 37% subscription, according to details available with the NSE at 12:21 pm.

The component meant for non-institutional investors secured an 73% subscription, while the category for retail investors got a 40% subscription. The quota for qualified institutional investors was also booked 4%.

LG Electronics India IPO: Lot size

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

In terms of issue allocation, 50% of the net offer is reserved for qualified institutional buyers, or QIBs, 35% for retail investors, and the remaining 15% for non-institutional investors.

Prior to the IPO, the company collected ₹3,475 crore from anchor investors, including the Singapore Government, Fidelity Funds, BlackRock Global Funds, Goldman Sachs, Government Pension Fund Global, Abu Dhabi Investment Authority, SBI Mutual Fund (MF), ICICI Prudential MF, Kotak MF, HDFC MF, HDFC Life Insurance Company, SBI Life Insurance Company, and ICICI Prudential Life Insurance Company.

It allotted 30,481,539 shares to 149 funds at ₹1,140 apiece, a circular on the BSE website showed.

LG Electronics India IPO timeline: Key dates

• Finalisation of allotment: October 10
• Initiation of refunds: October 13
• Credit of shares to Demat account: October 13
• Listing on NSE and BSE: October 14

LG Electronics India is a prominent player in major home appliances and consumer electronics, dealing in products like washing machines, refrigerators, inverter air conditioners, LED TV panels, and microwaves, among others, which are sold to both B2C and B2B customers in domestic and international markets. Its manufacturing facilities are located at Noida (UP) and Pune.

LG Electronics India IPO GMP

According to investorgain.com and media reports, the unlisted shares of LG Electronics India are trading at ₹1,458 per share, reflecting a grey market premium of 27.89% over the upper price band of ₹1,140.