Interestingly, the company placed bids totaling an eye-watering Rs 748 crore. The company, an NBFC focused on investing in equities and securities, said in a regulatory filing on October 9 that it is participating in the IPO as a financial investor. The proposed acquisition involves 65.65 lakh shares, company information shows.
It is important to note that this was not the company’s own money, but pure leverage, a common practice in the financial markets used by both individual and institutional investors. Leverage involves using borrowed money or debt to increase potential returns. Instead of investing just their own capital, investors borrow additional money to acquire more assets – whether stocks, real estate or derivatives – in the hope that the profits will exceed the cost of borrowing.
The Korean appliance giant’s shares rose 50% above their issue price of Rs 1,140, trading at Rs 1,710 on the NSE and Rs 1,715 on the BSE. The stellar debut also put an end to the ‘Rs 10,000 crore IPO curse’ where mega offerings have consistently failed to deliver pop figures on the day of listing. The company also achieved at least seven buy recommendations within minutes of its spectacular stock market debut.
Emkay Global Financial Services led the charge with the most aggressive stance on the Street and set a price target of Rs 2,050 on the stock, implying an eye-popping 80% upside from the IPO price. The brokerage valued LG India at 50 times its estimated September 2027 price-to-earnings ratio, which represents a 10% premium over Havells India.
Not only that, the IPO generated huge investor interest and broke all previous subscription records. The offer attracted bids worth as much as Rs 4 lakh crore as investors rushed to grab a piece of the consumer durables giant. The issue was subscribed 54 times, making it one of the most sought-after offerings of the year, NSE data showed. At around 2 pm, shares of Winro were trading at Rs 244.45, up 5% from the last close of the NSE. The shares trade on the BSE under the category “XT”, a sub-segment of the “T” (Trade-to-Trade) group, a regulatory measure for equities. Shares in these categories cannot be traded intraday and positions can only be taken on a delivery basis.
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