LG Electronics IPO First In India To Cross Rs 4 Lakh Crore-Mark In Subscription
The record was earlier held by Bajaj Housing Finance which saw bids worth Rs 3.24 lakh crore for its Rs 6,560-crore IPO that opened for subscription in September 2024.
LG Electronics India Ltd. has created history after it became the first initial public offering (IPO) in India to cross the Rs 4 lakh crore-mark in total subscription value.
The three-day public issue has received 385 crore shares against 7.13 crore shares on offer, with the overall subscription of 54.02 times. The total bid amount stood at Rs 4.4 lakh crore, making it the most subscribed IPO in terms of value.
The record was earlier held by Bajaj Housing Finance which saw bids worth Rs 3.24 lakh crore for its Rs 6,560-crore IPO that opened for subscription in September 2024. Prior to that, it was Coal India which garnered bids worth Rs 2.36 lakh crore, followed by Tata Technologies that drew bids worth Rs 1.56 lakh crore.
The portion reserve for qualified institutional buyers of the LG Electronics was subscribed 166.51 times, while the non-institutional investor category saw 22.45 times subscription. The retail individual investor segment received 3.55 times bids on its final day. The employee reserved category was subscribed 7.62 times on Thursday.
The IPO only comprises offer for sale of up to 10.18 crore equity shares. The price band for the issue is set at Rs 1,080-1,140 per share.
Through the IPO, the South Korean parent — LG Electronics Inc. — will offload 10.2 crore shares.
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Morgan Stanley India Co., JPMorgan India Pvt., Axis Capital Ltd., BofA Securities India Ltd., and Citigroup Global Markets India Pvt. are the bankers for the IPO.
The lot size for an application is 13 shares, which means the minimum amount of investment required by a retail investor is Rs 14,820 based on the upper price band. The allotment of shares to IPO investors will be finalised tentatively on Oct. 10, and the credit to the demat account will be done on Oct. 11. LG will list on the BSE and NSE on Oct. 14.
As there is no fresh issue component in the public offer the among raised will be given to the shareholders.
LG Electronics India operates in two key segments: home appliances and air solutions and home entertainment. It has firmly established itself as the market leader in major home appliances and consumer electronics, excluding mobile phones.
The company holds the top position in India across product categories such as washing machines, refrigerators, panel TVs, inverter air conditioners, and microwaves as per the value market share in the offline channel, stated the draft red herring prospectus. This dual focus on high-demand product categories and offline market strength has positioned LG as a go-to brand for Indian consumers.
