LG Electronics India's Initial Public Offering (IPO) has garnered significant investor interest, with the issue being oversubscribed 3.32 times by the second day of the offering. The Rs 11,607 crore IPO has entered its final day, showcasing strong demand across various investor categories.

Subscription Details

The IPO received bids for 23.71 crore shares against the 7.13 crore shares on offer, indicating robust investor appetite.

IPO Specifics

• Offer Size: Rs 11,607 crore
• Price Band: Rs 1,080 - Rs 1,140 per share
• Offer Type: Entirely an offer for sale by parent company LG Electronics Inc
• Shares Offered: 10.18 crore shares

Company Performance

LG Electronics India has demonstrated strong financial performance:

The company maintains market leadership in key product categories including televisions, refrigerators, and air conditioners. Notably, LG Electronics India boasts a debt-free balance sheet, which is likely to be viewed favorably by investors.

Valuation and Analyst Ratings

The IPO is valued at a price-to-earnings (P/E) ratio of 35.1x. Leading brokerage firms SBI Securities and Centrum Broking have issued 'Subscribe' ratings for the IPO, indicating a positive outlook on the offering.

Key Dates

• Share Allotment: Expected on October 10
• Listing Date: Planned for October 14 on BSE and NSE

Investors should note that IPOs can be subject to market risks, and it's advisable to read the offer documents carefully before making an investment decision. The strong oversubscription rates across investor categories suggest significant market interest in LG Electronics India's public offering, reflecting confidence in the company's business model and growth prospects.

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.