LG Electronics share price has 51% higher than the IPO price: more upside down or profits?

LG Electronics share price continued to rise a second consecutive day to the impressive debut on Tuesday, October 14. On the NSE, LG Electronics India share price debuted at £ 1,710.10, with a premium of 50%. Eventually, the shares finish 48.23% at £ 1,689.90. Similarly, LG Electronics share price made a remarkable market entry and closed with a profit of more than 48% compared to the issue of £ 1.140 on the BSE. The shares began trading at £ 1,715, reflecting a surge of 50.43% of the original issue price on the BSE. Throughout the day, the share climbed 52.31% to reach £ 1,736.40. At the end of the trade session, the shares of the company closed at £ 1,689.40, which was an increase of 48.19%. The company’s market cap was recorded at £ 1,14,671.81 crore. The initial public offer of LG Electronics India Ltd was signed in the last day of Bie with 54.02 times, spurred on by strong participation of institutional investors. Mohit Gulati, CIO and managing partner of the ITI Growth Opportunity Fund, is of the opinion that the Sharp 50% pop in LG Electronics share price is a reflection of deep investor confidence in the company’s fundamentals and future readiness. Interestingly, above the strong institutional and retail participation, it was the employee section that saw over overwhelming subscription – and rightly. The people of a business are the true essence of it. The value that helped them to create years of hard work and loyalty is now reflecting on it. It’s not just a financial reward – it’s emotional that replaces everyone. LG Electronics IPO consisted entirely of an offer for sale (OFS) of 10.18 Crore shares, which make up about 15% of the interest, offered by the parent company in South Korea. This is the second South Korean firm entering the Indian stock market, following Hyundai Motors India Ltd’s list in October of the previous year. The LG Electronics IPO, worth £ 11,607 crore, had a price tire between £ 1.080 and £ 1.140 per share. More upside down or profit ability? Arun Kejriwal, the founder of Kejriwal Research and Investment Services, said there were three to four factors contributing to LG Electronics India’s significant 50% premium list. First, the issue was reasonably priced. Second, the company works in a sector where it is a leading player. In the market for electronic and white goods, it is one of the top companies and is widely respected compared to the Japanese, Korean and Chinese brands available in the country. It has a legacy that has been in India for about 66 years. All of these aspects create a positive sentiment about the brand. Another important aspect is that it is the second Korean firm to be revealed after Hyundai. The situation with Hyundai has deteriorated from the first day of the listing. At the time, the company wanted to raise money, but it did not have capacity, and there were no growth prospects until a new plant began, which was considered negative factors from an investor’s point of view. In contrast, this company raises money for a OFS, while also discussing new expansion plans, with the factory expected to be in effect much faster. They establish a large facility. The problem attracted a significant subscription and there was live gray market activity from the beginning. The premium has gradually increased, and yesterday’s list exceeded GMP, resulting in a 50% doll. Considering the subscription numbers experienced by the business, such a jump is quite rare. However, the disadvantage is whether this price can be maintained. It seems very unlikely in the short term. Investors who have received shares should consider whether they should close profits or keep a stop loss at the low of the day at the list. Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, and not of currency. We advise investors to check with certified experts before making investment decisions.