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LG Electronics IPO Day 1 LIVE: The initial public offering (IPO) of LG Electronics India Ltd, the Indian subsidiary of South Korea's LG conglomerate, is set to open for subscription on October 7 and will close on October 9. LG Electronics IPO price band has been established at ₹1,080 to ₹1,140 per share, which values the company at approximately ₹77,400 crore at the upper price point.

LG Electronics IPO GMP today is ₹318. This indicates LG Electronics share price were trading at a premium of ₹318 in the grey market, according to investorgain.com.

LG Electronics IPO is entirely an offer-for-sale (OFS) of 10.18 crore shares, representing about 15% of the stake held by the South Korean parent company. As the public issue is fully an OFS, LG Electronics India will not receive any proceeds from the IPO; instead, the funds raised will go to its parent company.

LG Electronics India is a prominent player in the home appliances and consumer electronics sectors, catering to both B2C and B2B customers domestically and internationally.

The company offers a range of products, including washing machines, refrigerators, LED TV panels, inverter air conditioners, and microwaves. It operates manufacturing units located in Noida (Uttar Pradesh) and Pune.

(Stay tuned for more updates)

LG Electronics India Ltd has successfully raised ₹3,475 crore from anchor investors just a day before its initial public offering (IPO) opened for public subscription. The anchor book attracted significant interest from foreign investors, including notable entities such as the Singapore government, Goldman Sachs, Fidelity Funds, BlackRock Global Funds, Abu Dhabi Investment Authority, and Government Pension Fund Global, as detailed in a circular posted on the BSE's website.

Additionally, several domestic institutional investors participated in the anchor round, including SBI Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Kotak Mutual Fund, SBI Life Insurance Company, HDFC Life Insurance Company, and ICICI Prudential Life Insurance Company.

In total, LG Electronics India allotted 30,481,539 equity shares to 149 funds at a price of ₹1,140 each, according to the circular.

“LG Electronics has proven its ability to leverage the strong brand, technical knowhow and execution abilities as reflected in its strong market share across product categories. It has a cash rich balance sheet with superior margin and return-ratios. Further, the company continues to invest growth capital to cater to under-penetrated domestic home appliance and consumer electronic products along with positioning for export opportunity. All these factors coupled with MNC parentage makes the issue attractively priced. Thus, we assign SUBSCRIBE rating on LG Electronic IPO,” said ICICI Direct Research.

The South Korean parent company, LG Electronics Inc., is set to raise ₹11,607 crore by offering 10.18 crore shares through the Offer for Sale (OFS) mechanism.

There will not be any new equity issued in the IPO, which means that the Indian subsidiary will not receive any funds from this offering. At the highest end of the price range, the post-issue market capitalization of LG Electronics India will reach ₹77,820 crore. Following the stake sale, the promoter's ownership in LG Electronics India will be reduced to 85%.

Tentatively, LG Electronics IPO basis of allotment of shares will be finalised on Friday, October 10 and the company will initiate refunds on Monday, October 13, while the shares will be credited to the demat account of allottees on the same day following refund. LG Electronics share price is likely to be listed on BSE and NSE on Tuesday, October 14.

LG Electronics IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors.

LG Electronics IPO GMP today is ₹318. This indicates LG Electronics share price were trading at a premium of ₹318 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of LG Electronics share price was indicated at ₹1,458 apiece, which is 27.89% higher than the IPO price of ₹1,140.

Based on the grey market activities observed over the last seven sessions, today's IPO Grey Market Premium (GMP) is trending upward, suggesting a strong listing is anticipated. Experts indicate that the lowest GMP recorded is ₹145.00, while the highest reaches ₹318.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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