Kolkata: The Rs 11,607.01-crore IPO of Korean giant LG Electronics has been a remarkable success with investors lapping up the issue 54.02 times overall. The issue was subscribed 3.55 times in the retail category, 166.51 times in QIB (Ex Anchor) category and 22.44 times in the NII category. The shares will list today, October 14. A huge number of successful subscribers as well as general applicants who did not get the shares, those who did not apply at all and market analysts are waiting for the listing price and therefore, the listing gain.
The response to the IPO was all the more remarkable as the issue consisted entirely of OFS shares, the proceeds of which will not accrue to the company at all but will go to the parent company of the Indian operations in South Korea. The LG Electronics show became even more conspicuous against the backdrop of the bigger Tata Capital IPO which carried the formidable Tata brand, and a large past of fresh shares attracting only a subscription of 1.95 times overall.
LG Electronics GMP at highest level
According to investorgain data, LG Electronics GMP on the morning of October 14 stood at Rs 430. Considering the upper end of the price band at Rs 1140.00, LG Electronics shares can have a listing of Rs 1,570. In other words, the listing gain can be to the tune of 37.72%. This is the highest level of GMP recorded by this public issue.
The significant point is that the GMP on the day of listing is Rs 50 more than the level of Rs 380 witnessed on the last day of the bidding process, October 9. That GMP signaled a listing gain of 33.33%. The GMP kept rising almost constantly from October 1, since when the GMP data has been tracked. It was at Rs 145 on October 1. However, it must be remembered that GMP is a volatile and unofficial variable and does not guarantee gain (or loss) on listing.
Incidentally, the Tata Capital shares listed on October 13 at a premium of 1%. Its GMP was zero for a couple of days prior to listing.
(Disclaimer: This article is only meant to provide information. TV9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, precious metals, commodity, REITs, INVITs, any form of alternative investment instruments and crypto assets.)