LG Electronics IPO Closes Today, Tata Capital GMP Drops LG Electronics' INR 11,607-crore initial public offering (IPO) of LG Electronics, which opened on October 7, is set to close today, October 9. The grey market premium (GMP) for Tata Capital has seen a notable decline.
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The INR 11,607-crore initial public offering (IPO) of LG Electronics, which opened on October 7, is set to close today, October 9. The IPO's price band has been set between INR 1,080-1,140 per share, valuing the company at around INR 77,400 crore at the upper end.
This marks the second South Korean company to enter the Indian stock market, following Hyundai Motors India Ltd, which went public in October last year. The LG Electronics IPO is a complete offer-for-sale (OFS) of 10.18 crore shares, representing about 15 per cent stake, by the South Korea-based parent company.
LG Electronics India is a major player in the home appliances and consumer electronics segment, manufacturing and selling products such as washing machines, refrigerators, LED TV panels, inverter air conditioners, and microwaves.
The grey market premium (GMP) for LG Electronics has continued to rise, currently standing at INR 300. Based on this, the IPO could list at approximately INR 1,440, translating to a 26.32 per cent premium over the upper end of the price band. LG Electronics shares are scheduled to make their stock market debut on October 14.
Tata Capital IPO Ends with 2x Subscription
The INR 15,512-crore initial public offering (IPO) of Tata Capital closed on Wednesday, with the issue subscribed nearly two times the previous anchor offer size. Against 33.3 crore shares offered at a price band of INR 310-326 per share, the IPO received bids for 65.1 crore shares, taking the total book size to INR 21,230 crore, according to data from the BSE. The IPO opened on October 7, and the company's shares are expected to be listed on October 13.
The three-day bidding window, held from October 6 to October 8, saw robust participation across all investor categories, with the overall issue subscribed 1.96 times.
Qualified Institutional Buyers (QIBs) category was subscribed 3.42 times, Non-Institutional Investors (NIIs) 1.98 times, and the retail investor portion 1.10 times.
Meanwhile, the grey market premium (GMP) for Tata Capital has seen a notable decline. After peaking at around INR 30 during the early bidding days, it has now dropped to approximately INR 3. At current GMP levels, Tata Capital's listing price is expected to hover around INR 329, just marginally above the upper end of the price band (INR 326).
Market Outlook:
According to Bajaj Broking, the broader markets showed mixed trends. The BSE Midcap Index outperformed the frontline indices with a gain of 0.75 per cent, reflecting continued investor interest in quality mid-tier stocks. Meanwhile, the BSE Smallcap Index ended on a flat note, suggesting stock-specific action amid valuation concerns. Sectoral participation was broad-based, with all major indices closing in the green.
The brokerage firm's market outlook for the day said that notable gainers included Pharma, Metal, Oil & Gas, Realty, PSU Bank, and IT, each adding between 0.50-1 per cent. The rally in pharma and IT indicated defensive and export-oriented buying, while gains in PSU Banks and Metals hinted at optimism around domestic growth and commodity price movements.
