LG Electronics India becomes first-ever IPO in India to cross ₹4 lakh crore in subscription value

The Indian arm of the South Korean company, LG Electronics India Ltd, has made market history by becoming the first initial public offering (IPO) in India to cross the ₹4 lakh crore mark in total subscription value, making it the most subscribed IPO in the country by value to date.

The ₹11,607-crore issue received bids for 3,85,33,26,672 shares against 7,13,34,320 shares on offer, translating into an overall subscription of 54.02 times. Institutional demand drove the surge, with Qualified Institutional Buyers (QIBs) subscribing 166.51 times, followed by non-institutional investors at 22.44 times, and retail investors at 3.54 times.

In the unlisted market, shares of LG Electronics India were trading 26% higher with a grey market premium of ₹298 per share, which has remained consistent since Wednesday. It must be noted that these are only speculative reports, and the original listing price may vary from these rates.

LG Electronics India shares will list on the stock exchanges next week, on October 14. The entire issue is an offer for sale, with the parent company LG Electronics Inc, selling its stake. Its India unit will not be receiving any proceeds from the issue.

A total of 10.18 crore equity shares were on offer at a price band of ₹1,080 to ₹1,140 apiece, which implies a market capitalisation of around $8.7 billion, or roughly ₹77,000 crore at the upper end.

Prior to the IPO, the company raised ₹3,474 crore from multiple anchor investors. Its board had approved the issue of 3.04 crore equity shares to eligible anchor investors at the upper end of the IPO price band of ₹1,140 per share.

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