LG Electronics India IPO opens today: Should you subscribe? Key things to know

LG Electronics India IPO subscription begins on October 7. 

LG Electronics India IPO opens today for public subscription. This will be third mainboard issue in the primary market after WeWork India and Tata Capital IPOs opened earlier for bidding.

LG Electronics India Ltd is the Indian arm of South Korea's LG conglomerate. This will be the second South Korean company to tap the Indian stock market, following the listing of Hyundai Motors India Ltd in October last year.

Here are key things to know before you subscribe to the issue:

1) Anchor investment: A day earlier on Monday, it collected Rs collected Rs 3,475 crore from anchor investors, including the Singapore government, Goldman Sachs, Fidelity Funds, BlackRock Global Funds, Abu Dhabi Investment Authority and Government Pension Fund Global.

2) Subscription and price band: Rs 11,607-crore IPO will open for subscription on October 7 and close on October 9. The price band has been set at Rs 1,080 to Rs 1,140 per share, valuing the company around Rs 77,400 crore at the upper end.

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3) LG Electronics India is a leading player in major home appliances and consumer electronics. The company's products are sold to both B2C and B2B customers in India and abroad. It also provides installation, repair, and maintenance services for all its products. The company manufactures and sells products, including washing machines, refrigerators, LED TV panels, inverter air conditioners, and microwaves. It has manufacturing units at Noida (UP) and Pune.

4) Allotment and listing details: LG Electronics India IPO shares are expected to be allotted by October 10, while listing is scheduled to take place on October 14.

5) LG Electronics India IPO GMP Today Price: According to platforms tracking the grey market activities, the shares of LG Electronics India are commanding a GMP of about 28 percent in the unregulated market. Investorgain quoted a GMP of Rs 318 for the shares of the company, indication a listing gain of 27.89 percent.

LG Electronics India IPO: Should you subscribe?

The analysts at SBI Securities noted the key highlights of the company, including innovative technologies tailored for Indian consumers, pan-India distribution network, robust manufacturing capabilities supported by localized supply chain and strong parentage as the company is a subsidiary of LG Electronics Inc, which is a leading single-brand global home appliance player.

Among its growth strategies, the research report further noted the company's strong foundation to capture long-term growth in India. The company continues to be a brand of choice for Indian households across volume and premium market categories, even as it diversifies the business model to create new customer value, the report noted.

The report also highlighted risk factors, including royalty fees, raw material price risk and supplier concentration.

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