The initial public offering of LG Electronics India opened for public bidding today, October 7. The maiden issue of the company has been fully subscribed.


The IPO received bids for around 7.45 crore shares, as against the offer size of 7.13 crore shares, according to data on NSE at 4.40 pm. Retail investors and Non Institutional Investors (NII) have booked 81 percent and 231 percent of their reserved portions respectively. Qualified Institutional Buyers (QIB) have subscribed 49 percent of the portion kept for them.

LG Electronics India launched its IPO to raise Rs 11,607-crore entirely through an offer for sale (OFS) of shares by Korean parent LG Electronics Inc, with no fresh issue component. This means that none of the IPO proceeds will go to the company as they will be received by the selling promoters. The price band for the IPO has been set at Rs 1,080-1,140 apiece.

Investors can bid for a minimum of 13 shares, requiring an investment of Rs 14,820 at the upper price band, and in multiples thereafter. The allotments are likely to be finalized by October 10, and the shares are scheduled to be listed on stock exchanges on October 14.

A day before the IPO opened for public bidding, LG Electronics India announced that it has raised Rs 3,474.9 crore from 149 anchor investors on October 6. Marquee global names like Goldman Sachs, Fidelity, BlackRock, Abu Dhabi Investment Authority, Government of Singapore, Monetary Authority of Singapore, INQ Holdings, T Rowe Price International, Schroder International and Pictet became shareholders of the home appliances and consumer electronics manufacturer.

LG Electronics claims to be the market leader in India across multiple product categories including washing machines, refrigerators, panel televisions, inverter air conditioners, and microwaves in the offline channel in terms of value.

Ahead of listing, the unlisted shares of the company were trading with nearly 28 percent grey market premium (GMP) over the IPO price, according to data on Investorgain. This has increased from the 13 percent quoted by the site earlier last week.

According to IPO Watch, the unlisted shares of LG Electronics India were trading with more than 27 percent GMP.