Introduction
LG Electronics’ Indian unit recently launched one of the most anticipated IPOs of 2025, drawing huge attention from investors. As the dust settles on subscription, many applicants are now waiting for the allotment status and closely watching the GMP (Grey Market Premium) to gauge listing potential. Let’s break down what you need to know — how to check your allotment, what GMP means, and what to expect for the listing.
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1. What is IPO Allotment Status?
After IPO subscription closes, the issuing company finalizes the basis of allotment — i.e. who gets shares and how many. The IPO allotment status tells you whether your application was successful (you got shares) or not. If not allotted, your money is refunded.
For the LG Electronics IPO, allotment was expected to be finalized on October 10, 2025. How to Check Your Allotment Status
- Visit the registrar’s website (e.g. KFin Technologies)
- Go to the “IPO Allotment / Bid Status” section
- Choose “Equity & SME IPO bid details”
- Enter your PAN, Application Number / DP ID
- Check result (allotted or not)
Also, you can check via exchanges’ sites like BSE/NSE using your PAN / application number.
2. Understanding GMP (Grey Market Premium)
GMP, or Grey Market Premium, refers to the extra price per share that investors are willing to pay in the unofficial, over-the-counter market before the shares get listed. It’s not regulated and purely based on speculation and demand.
How to calculate GMP:
GMP = Grey Market Price – IPO Issue Price
For example, if the IPO issue price is ₹1,100, and in the grey market people are trading at ₹1,200, then GMP = ₹100.
A positive high GMP signals strong demand and suggests that the share might list at a premium. But a caveat: GMP is not always accurate. The final listing price can deviate.
Also, there are related terms:
- Kostak rate: a fixed price for the full application lot, irrespective of allotment
- Subject to Sauda: deal where payment is only if shares are allotted
3. What’s the GMP for LG Electronics IPO?
Reports suggest that GMP for LG’s IPO surged sharply ahead of listing. Some sources mention GMP reaching around ₹400 over the issue price.
This jump in GMP reflects the strong investor sentiment and expectation of listing gains. But remember — it’s speculative and not guaranteed. Market conditions on listing day will also play a big role.
4. What to Expect on Listing Day & Risks
Given a high GMP, many anticipate that LG’s shares could debut with a strong premium. But here are some caveats:
- Volatility Risk: The grey market is unregulated — prices can swing sharply.
- Mismatch Risk: GMP might overestimate or underestimate actual listing price.
- No Allotment: Even if you see GMP, you might not receive allotment and hence not benefit.
- Refund Timing: Unallotted applicants get their money refunded — usually shortly after allotment process completes.
5. Final Tips for Investors
- Check your allotment status the moment it’s released via KFin or BSE/NSE portals.
- Keep an eye on GMP trends — rising GMP often signals excitement.
- But weigh GMP with fundamentals: company’s earnings, roadmap, growth potential.
- Don’t rely solely on GMP to decide investing; it’s just one signal.
For a deeper and trusted explanation of GMP in IPOs, you can refer to Angel One’s guide on “What is Grey Market Premium?” which details how it’s calculated and applied Angel One
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