BSE-listed Winro Commercial India made a notional profit of Rs 2.15 crore in a single day after LG Electronics India made a bumper stock market debut.
LG Electronics India shares made a bumper stock market debut on October 14, listing at a premium of 50 percent over its IPO price at Rs 1,710.10 per share on the NSE. This comes after the Rs 11,607-crore IPO of the company saw strong investor interest during its three days of public bidding, being subscribed more than 54 times between October 7 and October 9.
Winro Commercial India's bid for LG Electronics India IPO:
Winro Commercial India, which has a market capitalisation of a little over Rs 30 crore, had placed bids for 65.65 lakh shares of LG Electronics India, with the total bid amount standing at Rs 748.5 crore. It placed bids under the Qualified Institutional Bidder (QIB) section.
The company however got allotted for 37,482 shares, with a total investment amount of Rs 4.27 crore at an average price of Rs 1,140 per share. At the bumper listing price, the same number of shares would be worth around Rs 6.41 crore, implying a notional profit of more than Rs 2 crore.
It is worthy to be noted that the profit is notional as the company has not yet announced that it has sold the shares of the company at the bumper listing price. The company now holds 0.004 percent of LG Electronics India post issue capital.
Winro Commercial India is a non-banking financial company (NBFC) engaged in the business of investment in shares and securities.
LG Electronics India market debut:
At the end of its debut day, LG Electronics India shares dropped nearly 2 percent to close at Rs 1,682.80 apiece on NSE. The stock’s market capitalization stands at Rs 1.14 lakh crore. This is higher than its South Korean parent’s market capitalisation of around Rs 8,800 crore.
Also read: Buy LG Electronics India, target of Rs 1800; says Motilal Oswal
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