LG Electronics India, a subsidiary of the South Korean electronics giant, launched its Initial Public Offering (IPO) in the Indian market, but the response on the first day was subdued. The IPO, which opened for subscription, received only 0.07 times subscription on its debut day, indicating a cautious approach from investors.

IPO Details

LG Electronics Inc., the parent company, is offloading 10.2 crore shares through this offer for sale, potentially reducing its stake in the Indian subsidiary.

Company Profile

LG Electronics India has established a strong presence in the Indian consumer electronics market. The company operates in three primary segments:

1. Home Appliances
2. Air Solutions
3. Home Entertainment

The company claims market leadership positions in several product categories within India's offline retail channel, including:

• Washing Machines
• Refrigerators
• Panel TVs
• Inverter Air Conditioners
• Microwaves

Market Sentiment

Despite the company's strong market position, the initial response to the IPO has been lukewarm. However, the grey market premium suggests a more optimistic outlook:

It's important to note that grey market premiums are unofficial and subject to change.

IPO Management

LG Electronics India has enlisted the services of several prominent financial institutions to manage the IPO:

• Morgan Stanley India
• JPMorgan India
• Axis Capital
• BofA Securities India
• Citigroup Global Markets India

As the IPO progresses, investors and market watchers will be keenly observing the subscription trends and any potential changes in market sentiment. The final outcome of the IPO and its impact on LG Electronics India's market position will become clearer as the subscription period concludes and the listing date approaches.

LG Electronics India Ltd. has kicked off its initial public offering (IPO) process with a strong start, raising Rs 3,475 crore from anchor investors ahead of its Rs 11,607 crore IPO. This development signals significant interest from institutional investors in the consumer electronics giant's public offering.

Anchor Investment Highlights

• Total Raised: Rs 3,475 crore
• Shares Allotted: 3.04 crore
• Price per Share: Rs 1,140
• Number of Anchor Investors: 149

Key Anchor Investors

Other notable participants include Goldman Sachs and Blackrock Global Funds.

IPO Details

• Offer Size: Up to 10.18 crore equity shares
• Price Band: Rs 1,080 - Rs 1,140 per share
• IPO Open Date: October 7
• IPO Close Date: October 9

The IPO comprises an offer for sale by the South Korean parent company, LG Electronics Inc., which will offload 10.2 crore shares through this public offering.

Company Overview

LG Electronics India has established itself as a market leader in several home appliance and entertainment segments:

• Washing Machines
• Refrigerators
• Panel TVs
• Inverter Air Conditioners
• Microwaves

Financial Performance

Q1 Performance (Fiscal 2025)

The strong financial performance and market leadership positions of LG Electronics India in key consumer electronics segments appear to have attracted significant interest from anchor investors. This robust response in the anchor book may set a positive tone for the upcoming public offering.

Investors and market observers will be keenly watching the public response to this IPO, given the company's strong brand presence and financial track record in the Indian market. As always, potential investors should carefully review the offer document and consider their financial goals before making an investment decision.