LG Electronics IPO Subscription Status, GMP LIVE: LG Electronics IPO subscribed 0.61 times so far on Day 1, GMP up 27%; Check issue price and key details here – IPO News

The LG Electronics IPO was subscribed 0.61 times overall so far. The retail investors was subscribed 0.59 times, the Qualified Institutional Buyers (QIB) segment at 0.07 times, and Non-Institutional Investors (NII) leading with 1.36 times. The bidding process is still ongoing and will continue until October 9.

“The company’s market leadership, operational scale, and profitability make it suitable for long-term investors, warranting a “SUBSCRIBE for Long-Term Investment” recommendation,” said the brokerage Canara Bank Securities Canmoney in its IPO note.

The LG Electronics IPO so far in its Day 1 of bidding received an overall subscription of 0.39 times. Retail investors showed the most interest, booking 42% of their allotted quota, while the Non-Institutional Investor (NII) segment subscribed 77%. Meanwhile, the Qualified Institutional Buyers (QIB) category saw limited participation at just 4%. The bidding process is still underway and will remain open till October 9.

Between FY22 and FY25, the company posted a 13% revenue CAGR and maintained an EBITDA margin of around 12.8%. In FY25, net profit crossed Rs 22,000 crore with a PAT margin of 8.95%.

The LG Electronics IPO opened its bidding today. At this hour, the issue was subscribed 0.17 times overall, with retail investors leading the response at 0.19 times, while the NII (non-institutional investor) category saw a subscription of 0.33 times. The QIB (qualified institutional buyer) segment is yet to see any bids. The bidding process is still underway and will remain open till October 9.

“The IPO is entirely an OFS (Rs 11,607 cr) issue. At the upper price-band, the issue is valued at 35.1x P/E. The company is a market leader with leading market share across product categories. Leveraging it’s technological innovations, decades of operations which enable better understanding of consumer behaviour & navigating change of preferences along with band loyalty & value are all the factors that will command valuations. Compared to peers, we see the issue fairly valued, w recommend “SUBSCRIBE” to the issue,” said Aditya Birla Money in its IPO note.

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“India’s home appliances and consumer electronics market is expected to grow to ~Rs. 10,965bn by CY29, driven by a rising middle class, premiumization, and urbanization. The B2B segment, valued at ~Rs. 515bn in CY24, is projected to grow at a 14% CAGR, with the company expanding into HVAC, LED solutions, and electronic blackboards, focusing on energy efficiency and system integration,” said the brokerage Choice in its IPO note.

“At the upper end of its price band, LG India is valued at a P/E of 38.0x (TTM EPS Rs. 30) and EV/Sales of 3.0x, trading at a discount to its industry peers. Given its market leadership, strong brand, robust growth prospects, and strategic expansion into high-potential B2B segments, the company is well-positioned to benefit from rising demand. Thus, we recommend a “SUBSCRIBE” rating,” added the report.

“LGEDIA has proven its ability to leverage the strong brand, technical knowhow and execution abilities as reflected in its strong market share across product categories. It has a cash rich balance sheet with superior margin and return-ratios. Further, the company continues to invest growth capital to cater to under-penetrated domestic home appliance and consumer electronic products alongwith positioning for export opportunity. All these factors coupled with MNC parentage makes the issue attractively priced. Thus, we assign SUBSCRIBE rating on LGEDIA IPO,” said ICICI Direct in its IPO note.

The anchor book of the IPO saw allocation of around 3.04 crore shares at Rs 1,140 per share, raising approximately Rs 3,475 crore. Anchor investors face a lock-in period of 30 days for half their shares and 90 days for the remaining portion, as per SEBI’s revised rules.

As of June 2024, the company had a wide network consisting of 25 warehouses, approximately 949 service centers, over 12,500 service engineers, and nearly 36,000 retail touchpoints. In addition, LG India works with more than 31,000 sub-dealers, serving both B2C and B2B customers.

The IPO is open for bidding from October 7 to October 9. The allotment is expected to be finalised on October 10, and the credit of shares to demat accounts may take place by October 13. The tentative listing date for the stock on both exchanges is October 14.