The share price of LG Electronics increased for a second day following its 50% premium launch price of ₹1,710.10. With a market valuation of ₹1,14,671.81 crore, it closed 48.23% higher at ₹1,689.90. Strong investor confidence was demonstrated by the 54.02-fold oversubscription of LG Electronics' IPO.
After making an outstanding debut on Tuesday, October 14, LG Electronics' stock rose for a second straight day today. LG Electronics India's share price debuted at ₹1,710.10 on the NSE, indicating a 50% premium. The shares ultimately closed at ₹1,689.90, up 48.23%.In a similar vein, LG Electronics' stock price made a spectacular debut on the market and ended up rising by more than 48% from its ₹1,140 issue price on the BSE. On the BSE, the shares started trading at ₹1,715, which represented a 50.43% increase from the initial issue price. The stock increased 52.31% over the day to ₹1,736.40. By the end of the trading session, the company's shares finished at ₹1,689.40, marking an increase of 48.19%.
The market capitalization of the company was valued at ₹1,14,671.81 crore.
Thanks to the active engagement of institutional investors, LG Electronics India's IPO was oversubscribed by 54.02 times on the last day of bidding.
The market capitalization of the company was valued at ₹1,14,671.81 crore.
Thanks to the active engagement of institutional investors, LG Electronics India's IPO was oversubscribed by 54.02 times on the last day of bidding.
According to Mohit Gulati, CIO and managing partner of ITI Growth Opportunities Fund, the dramatic 50% increase in LG Electronics' share price reflects strong investor faith in the company's foundation and preparedness for the future.
It's interesting to note that, despite the high institutional and retail engagement, the employee section saw the most subscriptions, and for good reason. A company's fundamental essence is its people. After years of dedication and hard work, the value they helped create is now being reflected back on them. This is an emotional reward that surpasses any monetary ones, he continued.
It's interesting to note that, despite the high institutional and retail engagement, the employee section saw the most subscriptions, and for good reason. A company's fundamental essence is its people. After years of dedication and hard work, the value they helped create is now being reflected back on them. This is an emotional reward that surpasses any monetary ones, he continued.
The parent firm, situated in South Korea, offered 10.18 crore shares, or around 15% of the total, as part of LG Electronics' first public offering (IPO).
After Hyundai Motors India Ltd. was listed in October of last year, this is the second South Korean company to join the Indian stock market. The pricing range for the ₹11,607 crore LG Electronics IPO was ₹1,080 to ₹1,140 per share.
Are LG shares due for further growth or profit-taking?
According to Arun Kejriwal, founder of Kejriwal Research and Investment Services, LG Electronics India's noteworthy 50% premium listing was the result of three or four causes.
After Hyundai Motors India Ltd. was listed in October of last year, this is the second South Korean company to join the Indian stock market. The pricing range for the ₹11,607 crore LG Electronics IPO was ₹1,080 to ₹1,140 per share.
Are LG shares due for further growth or profit-taking?
According to Arun Kejriwal, founder of Kejriwal Research and Investment Services, LG Electronics India's noteworthy 50% premium listing was the result of three or four causes.
First, the cost of the issue was affordable. Second, the business is a major player in the industry in which it works. Compared to the Chinese, Japanese, and Korean brands that are available in the nation, it is one of the leading companies and is highly regarded in the white goods and electronics sector. Having been in India for about 66 years, it has a legacy. All of these elements contribute to a favorable perception of the brand.
The fact that this is the second Korean company to go public after Hyundai is another important factor. From the first day of listing, things with Hyundai got worse. Although the company was trying to acquire money at the time, investors saw its lack of capacity and the lack of expansion opportunities until a new factory started up as drawbacks. This company, on the other hand, is contemplating fresh growth plans and soliciting funds for an OFS, with the goal of having the plant operating much sooner. They're building a big complex," he continued.
He noted that there was active grey market activity right away and that the issue received a sizable subscription. The GMP for LG Electronics' IPO grew steadily, and yesterday's listing surpassed the GMP, causing a 50% increase. According to Kejriwal, such a surge is quite uncommon given the company's subscription levels.
On the down side, the seasoned expert stated that it seemed highly improbable that this price can be sustained in the near future. He suggested that investors who have already acquired shares think about locking in profits or keeping a stop loss at the day's low at listing.
On the down side, the seasoned expert stated that it seemed highly improbable that this price can be sustained in the near future. He suggested that investors who have already acquired shares think about locking in profits or keeping a stop loss at the day's low at listing.
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