Three mainboard IPOs- LG Electronics India, Rubicon Research and Canara Robeco – are open for investors for bidding. However, the former one shall close for bidding today, while the latter two have opened today.
All the three issues are looking to cumulatively raise more than Rs 14,300 crore via their primary offerings.
LG Electronics India , whose IPO shall close for bidding on Thursday, October 09, has been subscribed 5.36 times, as of 12.00 noon on its last day of the bidding. Retail portion was booked 2.57 times, while the HNI portion was subscribed 14.36 times. Quota for qualified institutional bidders was booked 3.48 times as of the same time.
LG Electronics India is offering its shares in the range of Rs 1,080-1,140 apiece with a lot size of 13 equity shares, to raise a total of Rs 11,607 crore. The issue is entirely an offer-for-sale (OFS) of up to 10,18,15,859 shares. The offer had kicked off for subscription on Tuesday, October 08. The issue commanded a grey market premium (GMP) of Rs 310 apiece, suggesting 27 per cent gains.
LG Electronics is bringing the issue at a P/E multiple of 38 times on a post issue basis. It has leading market share in the home appliances and consumer electronics industry in India with number one market share across key product categories, said Hem Securities.
“It has operational efficiency through strong manufacturing capabilities and localized supply chain & parentage of LG Electronics, which is the leading single-brand global home appliances player in terms of market share by revenue in CY 2024 and strong LG brand. Hence we recommend ‘subscribe’ to this IPO,” it added.
Rubicon Research’s IPO opened on Thursday, October 9 and will close on Monday, October 13. It has been subscribed 13 per cent as of the same time. Retail portion was booked 52 per cent, while the HNI portion was subscribed only 13 per cent. Quota for qualified institutional bidders was not even off the mark.
Rubicon Research is offering its shares in the range of Rs 461-485 apiece with a lot size of 30 equity shares. It is looking to raise a total of Rs 1,377.50 crore, which includes a fresh share sale of Rs 500 crore and an offer-for-sale (OFS) of up to 1,80,92,762 shares. Rubicon Research IPO’s grey market premium (GMP) stood at Rs 98-100, hinting a listing pop of upto 20 per cent for the investors.
Rubicon’s operational excellence has translated into a healthy return profile, with ROE of 24.8 per cent and ROCE of 24.1 per cent in FY25, Its strong performance has been driven by a strategic focus on regulated markets, data-driven product selection, and enhanced sales and marketing capabilities in the US, said Nirmal Bang Securities.
While the IPO is priced at a valuation of 59.5 times FY25 EPS, appearing expensive relative to the industry average of 24.4 times, Rubicon’s robust product pipeline, scaling of recently launched products, and increasing share of specialty branded offerings provide strong long-term growth visibility. Given its strong growth trajectory and promising future outlook,” it said with a ‘subscribe’ rating.
Canara Robeco Asset Management, which launched it IPO on Thursday, October 09, saw an overall subscription of only 10 per cent as of the given time. Retail portion was booked only 17 per cent, while the HNI portion was subscribed merely 09 per cent. Quota for retail bidders was not even off the mark as of the same time.
Canara Robeco AMC is offering its shares in the range of Rs 253-266 apiece with a lot size of 56 equity shares, to raise a total of Rs 1,326.13 crore. The issue is entirely an offer-for-sale (OFS) of up to 4,98,54,357 equity shares. The offer will close for subscription on Monday, October 13. Its GMP was seen at Rs 30-35 apiece, suggesting a 12-13 per cent listing pop for the bidders.
Canara Robeco is India’s second oldest asset management company. Its product portfolio is predominantly equity-focused, with equity-oriented schemes consistently accounting for over 90 per cent of its total AUM. The issue is valued at a P/QAAUM of 4.8 times and a P/E of 26.4 times, indicating a fully priced valuation relative to peers, said Choice Broking.
“It has demonstrated consistent growth, supported by Canara Bank’s extensive branch network of over 9,861 branches, which contributes around 8 per cent of its total AUM. With a product mix dominated by equity-oriented schemes, the AMC remains well-positioned to benefit from rising retail participation in mutual funds,”‘ it added with a ‘subscribe for long-term’ rating.