The initial public offer of LG Electronics India Ltd, the Indian arm of South Korea’s conglomerate LG, was fully subscribed on the first day of bidding on Tuesday.
The three-day IPO received bids for 7,44,73,685 shares against 7,13,34,320 shares on offer, translating into 1.04 times subscription, according to NSE data.
Category-wise subscription
The portion meant for non-institutional investors garnered 2.31 times subscription, while the category for retail individual investors (RIIs) subscribed 81 per cent. The quota for qualified institutional buyers (QIBs) received 49 per cent subscription.
LG Electronics India Ltd on Monday collected Rs 3,475 crore from anchor investors.
LG India IPO size
The Rs 11,607-crore initial public offering (IPO) will conclude on October 9. The price band has been fixed at Rs 1,080 to Rs 1,140 per share, valuing the company around Rs 77,400 crore at the upper end.
This is the second South Korean company to tap the Indian stock market, following the listing of Hyundai Motors India Ltd in October last year.
The IPO is entirely an offer-for-sale of 10.18 crore shares, representing about 15 per cent stake, by the South Korea-based parent.
Since the public issue is completely an offer for sale(OFS), LG Electronics India will not receive any IPO proceeds. The funds raised will go to the South Korean parent.
LG Electronics India is a leading player in major home appliances and consumer electronics. The company’s products are sold to both B2C and B2B customers in India and abroad. It also provides installation, repair, and maintenance services for all its products.
The company manufactures and sells products, including washing machines, refrigerators, LED TV panels, inverter air conditioners, and microwaves. It has manufacturing units at Noida (UP) and Pune.
In terms of issue allocation, 50 per cent of the IPO is reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors, and the remaining 15 per cent for non-institutional investors.
LG Electronics India is expected to make its stock market debut on October 14.