A common household name and one of the most awaited IPO of the consumer electronics giant, LG Electronics India is gearing up to open its IPO subscription window tomorrow, October 7.
The company’s Rs 11,607 crore IPO will remain open till October 9. This will also mark it one of the biggest listings from the home appliances segment this year.
Before the issue hits Dalal Street, let’s take a look at what the GMP is indicating and other key details of the issue –
LG Electronics IPO: GMP surges before opening day
The LG Electronics shares in the unlisted market, as of the latest, is commanding a premium of Rs 278 over the upper price band of Rs 1,140. This translates to nearly 24% potential listing gains.
The premium has fluctuated in recent days, swinging between Rs 146 and Rs 250.
However, GMP is not the actual listing price and fluctuates based on market sentiment.
LG Electronics IPO: Entirely an OFS
The entire IPO is a pure Offer for Sale (OFS), meaning no fresh shares are being issued. All proceeds from the Rs 11,607 crore offer will go to existing shareholders, not the company.
This also means LG Electronics India won’t be raising new capital for business expansion through this IPO. This is a structure typically seen when promoters or investors look to partially exit their holdings.
LG Electronics IPO: Price band, lot size and key dates
The company has set its price band between Rs 1,080-1,140 per share, with one lot comprising 13 shares. The IPO allotment is likely to be finalised on October 10, and listing is expected on October 14 on both BSE and NSE.
The issue will be managed by some of the biggest names in investment banking such as Morgan Stanley India, JP Morgan India, Axis Capital, BofA Securities, and Citigroup Global Markets India, while KFin Technologies will serve as the registrar.