How Does LG Electronics IPO Listing Compare To Other Big Ticket IPOs Like Hyundai, LIC, Paytm
This listing gain made it the largest mainboard IPO (over Rs10,000 crore) since 2019 to list with such a high premium, fundamentally bucking the trend of disappointing debuts for many large-cap issues
The highly awaited LG Electronics India initial public offering (IPO) made a stellar debut on the exchanges on Tuesday, listing at a premium of nearly 50.4% over its issue price.
The stock opened at Rs 1,715 on the BSE and Rs 1,710.10 on the NSE, significantly higher than its issue price of Rs 1,140 at the upper end.
The LG Electronics India IPO witnessed record-breaking demand, attracting total bids worth Rs 4.39 lakh crore. With this, it surpassed the previous highest bidding record of Rs 3.2 lakh crore, set by Bajaj Housing Finance’s IPO last year. The demand from Qualified Institutional Buyers (QIB) was especially noteworthy, being booked 166.51 times and setting a new record for the highest value of bids received for this segment, surpassing previous records.
While the LG Electronics India IPO delivered a stellar debut, other large IPOs with issue sizes above Rs 10,000 crore since 2020 have shown mixed performance on their debut.
For instance, Hyundai Motor’s Rs 27,858-crore IPO listed at a 7.1% discount, while the LIC IPO, worth Rs 20,557 crore, also disappointed with a 7.7% drop on debut.
Similarly, SBI Cards’ Rs 10,340-crore issue saw a 9.7% decline in listing. These outcomes reflect cautious investor sentiment around big-ticket IPOs. In contrast, Swiggy’s Rs 11,327-crore IPO stood out, delivering a solid 16.9% listing gain.
The IPOs of Hyundai Motor India, LIC, Paytm, and SBI Cards listed at a discount, below their issue price. In comparison, the mainboard IPOs of NTPC Green, Swiggy, and HDB Financial listed at a premium with max gain of up to 17%.
The three-day public issue of LG Electronics received bids for 385 crore shares against 7.13 crore shares on offer, resulting in an overall subscription of 54.02 times. The allotment status for the IPO was finalised on Friday, and refunds and credit of shares were also completed by Monday night.
In contrast, other major IPOs in the same size category saw comparatively lower overall subscription:
LG Electronics India IPO
The Rs 11,607 crore IPO was a complete Offer-for-Sale by the Korean parent, LG Electronics Inc. No fresh capital was raised for LG India's operations; thus, the proceeds from the IPO went entirely to the selling shareholder.
