LG Electronics India IPO Sees Strong Demand
LG Electronics India’s initial public offering (IPO) of Rs 11,607 crore has made headlines by getting fully subscribed on the very first day of its opening. This remarkable response showcases the robust sentiment among investors, especially in the Indian market. Qualified institutional buyers (QIBs) were particularly enthusiastic, placing bids for 99.85 lakh shares out of the 2.03 crore shares available. This indicates a strong demand from institutional investors, which often sets the tone for the overall market.
Retail participation also played a significant role in this IPO. Retail investors bid for 2.89 crore shares compared to the 3.56 crore shares offered, achieving an impressive subscription rate of 81%. This level of interest reflects the growing confidence of individual investors in the Indian equity markets. Additionally, the non-institutional investors’ portion was subscribed 2.31 times, further emphasizing the overall positive outlook.
LG Electronics India set the price band for its shares between Rs 1,080 to Rs 1,140. With the IPO closing for subscription on October 9, investors are keenly watching the market dynamics. The high level of interest in this IPO is expected to create a ripple effect, encouraging more companies to consider going public.
In contrast, Tata Capital Ltd’s IPO of Rs 15,512 crore recorded a subscription rate of 75% by the second day of bidding. Qualified institutional buyers showed steady interest, with their portion subscribed by 86% on the second day. They placed bids for 8.15 crore shares against the 9.49 crore shares offered to them. Meanwhile, retail investors placed bids for 11.2 crore shares compared to the 16.61 crore shares on offer, representing a 67% subscription rate.
The non-institutional segment of Tata Capital’s IPO saw bids for 5.38 crore shares against 7.12 crore shares available. This consistent demand from both institutional and retail investors indicates a robust appetite for new issues in the Indian market. Tata Capital's IPO will close for subscription on October 8, and it will be interesting to see how the final numbers pan out.
Overall, the successful subscriptions of both LG Electronics India and Tata Capital’s IPOs signify a growing investor confidence in the Indian market, paving the way for more companies to tap into public offerings in the future.
