LG Electronics IPO shares GMP rises ahead of listing; will it deliver stellar listing pop?

Shares of LG Electronics India are set to make their Dalal Street debut on Tuesday, October 14 as the consumer durables player is likely to deliver a strong listing pop to the investors, considering the rising grey market premium and record-breaking bidding for the issue. If one goes by the latest signals from the unofficial market, LG Electronics is likely to buck the trend of muted listings.

Ahead of its listing, the grey market premium (GMP) of LG Electronics has seen a sharp rise in anticipation of a strong listing today. Last heard, the company was commanding a grey market premium of Rs 430 per share in the unofficial market, suggesting a listing pop of 38 per cent for the investors. The GMP stood at Rs 380 when the issue had closed for bidding.

The IPO of LG Electronics India ran for subscription between October 07-09. It sold its shares in the price band of Rs 1,080-1,140 per share with a lot size of 13 shares. It raised a total of Rs 11,607 crore via IPO, which was entirely an offer-for-sale (OFS) of up to 10,18,15,859 equity shares by its South Korean promoter LG Electronics Inc.

The issue was overall subscribed a solid 54.02 times, fetching over 65.06 lakh applications, fetching bids for nearly Rs 4.4 lakh crore. The allocation for the qualified institutional bidders (QIBs) was subscribed a whopping 166.51 times, while the portion for non-institutional investors' (NIIs) was subscribed 22.45 times. However, the retail investors' quota was booked 3.55 times.

New Delhi-based LG Electronics India, incorporated in 1997, is a manufacturer and distributor of home appliances and consumer electronics, excluding mobile phones. It sells products to B2C and B2B consumers in India and outside India. The company offers installation services, and repairs and maintenance services for all their products.

A host of major brokerage firms were positive on the issue, suggesting to subscribe to it. Morgan Stanley India Company, JP Morgan India, Axis Capital, BofA Securities India and Citigroup Global Markets India were the book running lead managers for LG Electronics IPO, while Kfin Technologies served as the registrar of the issue. Its shares shall be listed on both BSE and NSE.