After weeks of investor anticipation and record-breaking subscription, all eyes are now on LG Electronics India’s IPO listing, scheduled for October 14 (Tuesday). The allotment was finalised on October 10, and investors are eagerly awaiting the debut of one of the biggest consumer electronics issues of the year.
Now, the big that might be among many investors is – will LG Electronics deliver a strong listing pop or surprise investors with a muted debut? Let’s take a look at key details to watch out for ahead of the listing –
LG Electronics IPO: What is the GMP indicating ahead of listing
A look now at how the IPO fared in the the unofficial market in the first week of October- the GMP of LG Electronics IPO hovered around Rs 140-150, as the issue opened for subscription. However, once investor demand became visible, the premium shot up rapidly. By October 7, the GMP climbed to Rs 310-315.
This peaked around October 10-11, when the GMP touched Rs 395-Rs 421, the highest level yet. This translated into an expected listing gain of about 34%-36% over the upper price band of Rs 1,140 per share.
As the listing day drew closer, however, some cooling was seen. On October 13, a day before listing, the GMP hovered between Rs 370-Rs 390, suggesting an expected premium of roughly 32% at debut.
However, it is worth noting that the GMP is not the official indicator of listing price and is based on speculative trading and demand among unofficial market participants.
LG Electronics IPO: Subscription snapshot
The LG Electronics IPO on the final day of bidding on October 9 was subscribed 54.02 times overall.
Qualified Institutional Buyers (QIBs) received 166.51 times subscription. Non-Institutional Investors (NIIs) followed with 22.44 times. The retail segment also subscribed 3.55 times to its allocated portion.
LG Electronics IPO: Details and structure
The Rs 11,607 crore IPO was entirely an offer for sale (OFS) of 10.18 crore shares. This means that the company itself won’t receive any proceeds from the issue. The price band was set between Rs 1,080 to 1,140 per share. The minimum application lot size for retail investors was 13 shares, amounting to an investment of Rs 14,820 at the upper end.
Leading investment banks including Morgan Stanley, JPMorgan India, Axis Capital, BofA Securities, and Citigroup Global Markets India acted as book running lead managers.
Furthermore, KFin Technologies serves as the registrar.