Delhi, 14 October (H.S.): The stock market witnessed a day of sharply contrasting fortunes on Tuesday as two companies made their public debuts. LG Electronics India delivered a blockbuster listing that rewarded investors with substantial gains, while steel manufacturer Mittal Sections tumbled on its first day, ending locked in the lower circuit.

LG Electronics' Stellar Debut

Shares of consumer electronics major LG Electronics India made a powerful entry, delighting its IPO investors. Against an issue price of ₹1,140, the stock listed at ₹1,715 on the BSE and ₹1,710.10 on the NSE, marking a listing premium of nearly 50%. After a day of fluctuating trade where the share price touched a high of ₹1,749 and a low of ₹1,650, it closed at ₹1,689.90 on the NSE.

This secured a remarkable day-one gain of over 48% for those who were allotted shares in the IPO.The company's ₹11,607.01 crore IPO, open from October 7-9, received a phenomenal response, getting oversubscribed 54.02 times. It attracted bids exceeding ₹4 lakh crore, a record for any public issue in the last 17 years. The portion for Qualified Institutional Buyers (QIBs) was subscribed a staggering 166.51 times, underscoring strong institutional confidence backed by the company's robust financial health and consistent profit growth.

Mittal Sections' Disappointing Listing

In stark contrast, Mittal Sections, a maker of iron and steel products like flat bars and angles, had a dismal debut on the BSE's SME platform. The stock listed at ₹114.40, a 20% discount to its issue price of ₹143.

Following the weak opening, the share came under heavy selling pressure, quickly hitting its lower circuit limit of ₹108.40, where it remained for the rest of the session. This resulted in a steep loss of approximately 24% for its IPO investors on the listing day itself.

The company's ₹52.91 crore IPO had received a tepid response, with an overall subscription of 2.25 times. The portion for Non-Institutional Investors (NIIs) was subscribed just 0.55 times. While the company has shown rising profits, its financial disclosures also revealed a consistent decline in revenue over the past few fiscal years, which likely dampened investor sentiment.

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Hindusthan Samachar / Jun Sarkar