The much-awaited initial public offering (IPO) of LG Electronics India Ltd is drawing to a close on Thursday, and investors are eager to know if they should jump in.
With the IPO already seeing 4.17 times subscription in early trading, there’s excitement, curiosity, and a hint of urgency.
According to NSE data at 10:40 am, the issue received bids for 29.76 crore shares against 7.13 crore shares on offer.
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Among investor categories, non-institutional investors showed the strongest interest with 10.82 times subscription, while Qualified Institutional Buyers (QIBs) subscribed 2.6 times, and Retail Individual Investors (RIIs), 2.22 times.
Read More: LG Electronics India IPO: Should you apply? Anil Singhvi explains in 5 points
Why Investors Are Watching Closely
The IPO is entirely an offer-for-sale (OFS) of 10.18 crore shares, roughly 15% stake by the South Korea-based parent company. Priced at Rs 1,080 to Rs 1,140 per share, the IPO values LG Electronics India at around Rs 77,400 crore at the upper end.
While the IPO is an OFS and the company will not receive fresh capital, it offers investors a chance to invest in a leading brand in India’s home appliances and consumer electronics segment.
LG Electronics India manufactures and sells refrigerators, washing machines, LED TVs, inverter ACs, and microwaves, with manufacturing facilities in Noida and Pune.
Anil Singhvi’s Take: Should You Apply?
Market expert Anil Singhvi, Managing Editor of Zee Business, has given the IPO a big thumbs up, saying, “The more you read about it, the more you’ll fall in love with it.”
He believes investors should apply for both listing gains and long-term holding. Singhvi added, “If you get an allotment, you will definitely say – Life’s Good!”
He recommends applying with the full Rs 2 lakh limit in the retail category rather than just one lot to improve chances of allocation.
Singhvi also emphasised that this IPO is different from Hyundai’s listing, even though both are Korean companies, and noted that LG’s IPO is priced about 50% cheaper than its listed peers, making it an attractive bet.
Positives That Make LG IPO Attractive
LG Electronics India is backed by a strong global brand and trusted promoters with decades of credibility. The company is a market leader in India’s home appliances and consumer electronics segments and has a consistent growth track record with healthy financials.
Its valuation is attractive compared to listed peers like Havells and Voltas, and the royalty payment to the parent company is capped at a reasonable 2%.
These factors make it a fundamentally strong IPO for both short-term and long-term investors.
Potential Negatives
One of the main drawbacks is that this is entirely an OFS, so no fresh funds will flow into the company. Additionally, the promoters’ stake will reduce after listing, which could be a concern for some investors.
LG IPO: Last Day to Apply
Considering LG Electronics India’s strong brand leadership, growth prospects, and reasonable pricing, the IPO looks fundamentally sound.
Following Anil Singhvi’s advice, investors can confidently apply for both potential listing gains and long-term investment.
With the IPO closing on Thursday, this could be the last chance to be part of a trusted global brand with a strong presence in India.
