LG Electronics India is looking for a valuation of as much as 774 billion rupees ($8.71 billion) in its long-delayed preliminary public providing, tapping right into a bustling IPO market with one in every of India’s largest choices thus far this yr.
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LG Electronics India’s market cap surpassed that of its mum or dad firm after the subsidiary’s shares surged over 45% on market debut Tuesday.
The Indian unit’s market cap stood at 1.14 trillion rupees ($12.83 billion) as of 11.15 a.m. native time (1.45 a.m. ET), whereas its mum or dad firm’s valuation was 13.84 trillion Korean received ($9.68 billion).
The corporate’s shares surged as a lot as 50% on open, after its preliminary public providing noticed the strongest demand for an Indian IPO since 2008, led by institutional buyers. Shares have been final buying and selling 45% larger.
The IPO was priced on the high finish of the 1,080 rupee to 1,140 rupee apiece band, fetching 116 billion rupees ($1.3 billion), and was oversubscribed greater than 54 occasions, attracting bids price about 4.4 trillion rupees or practically $50 billion, change information revealed.
This was essentially the most closely subscribed main Indian IPO since Reliance Energy’s itemizing in 2008, PRIME Database’s Pranav Haldea instructed CNBC. It noticed huge demand from certified institutional consumers, who bid 166 occasions their allotted portion. Retail investor portion was oversubscribed 3.55 occasions.
The IPO was structured as a proposal on the market — no new shares have been issued — with mum or dad LG Electronics promoting 101.8 million shares. It was managed by a consortium of worldwide and home bookrunners, together with Morgan Stanley, J.P. Morgan, Axis Capital, BofA Securities, and Citigroup International Markets India.
Shares started buying and selling Tuesday on the Nationwide Inventory Alternate of India in addition to the BSE.
That is the second main subsidiary of a South Korean firm to faucet Indian markets in a few yr, after Hyundai Motor India’s itemizing in October 2024.
LG Electronics India is a unit of South Korea’s LG Electronics. It designs, manufactures, and markets a variety of shopper electronics and residential home equipment equivalent to fridges, air conditioners, washing machines, televisions, and good residence gadgets.
“LG Electronics India stands out because the listed equipment participant with the widest choices and are fashionable in many of the product classes they’re current in,” stated Himanshu Dugar, a SEBI-registered impartial fairness analysis analyst.
In accordance with Redseer Technique Consultants, India’s electronics and home equipment market is projected to virtually double from about $75 billion in 2024 to roughly $130 billion to $150 billion by 2029. “Accordingly, we count on LG Electronics India, because the market chief, will profit from these tailwinds,” stated Dugar.
India continues to rank among the many world’s busiest IPO markets this yr. EY’s newest international report exhibits the nation logged 146 choices within the third quarter, elevating $7.2 billion. That introduced the nine-month tally to 254 offers price $11.8 billion, underscoring the depth of its home capital markets, with IPO returns standing at 17.5%.
—CNBC’s Lim Hui Jie contributed to this report.
