LG Electronics India IPO Fully Subscribed On Strong Retail, NII Interest

The ₹11,607 crore initial public offering (IPO) of LG Electronics India has witnessed a sensational investor demand, with the IPO fully subscribed by the second day of bidding.

According to BSE data, investors have bid for 16,55,58,354 shares, compared to 7,13,34,320 shares on offer. The strongest demand was seen from Non-Institutional Investors (NIIs), who have subscribed 5.5 times the shares on offer. Qualified Institutional Buyers (QIBs) have subscribed at a rate of 1.24, while Retail Individual Investors (RIIs) have subscribed 1.57 times.

GMP Details

According to reports, the IPO has generated noticeable grey market activity, with premiums currently between ₹250 and ₹322 per share, indicating listing gains in the 22–28% range.

Analyst Call

LG Electronics India’s IPO values the company at around ₹77,000 crore, said SEBI-registered investment advisor True North Capital.

The 28-year-old consumer electronics giant dominates the Indian market across two key segments: Home Appliances & Air Solutions, which contribute 75% of FY25 revenue, and Home Entertainment, accounting for 25%. It holds leadership positions in washing machines, refrigerators, panel TVs, inverter ACs, and microwaves.

LG is backed by a vast distribution network of over 35,500 retail touchpoints and more than 1,000 service centres, and has a strong after-sales infrastructure.

Its manufacturing capacity of 14.5 million units across Noida and Pune operates at ~80% utilization, with a third $600 million plant in Andhra Pradesh set to open by Diwali 2026, expanding into B2B segments such as HVAC and commercial displays.

Financially, the company has delivered robust growth, with FY23–25 revenue CAGR at 10.8%, EBIT/PAT CAGR at 30.7%/27.8%, and strong return ratios.

At the top-end valuation of ₹1,140 per share, LG India trades at 35x FY25 P/E, considered reasonable given its profitability and market leadership. However, risks include high import dependence, royalty payments, ongoing tax disputes, and rising competitive pressures, the investment advisor added.

IPO Details

LG Electronics India’s ₹11,607 crore IPO opened for subscription from October 7 and will close on October 9. The fully Offer-for-Sale issue, priced at ₹1,080 to ₹1,140 per share, will see the proceeds go to the Korea-based parent company, with the listing slated for October 14.

This marks India’s third-largest IPO of 2025, following the ongoing ₹15,500 crore Tata Capital issue and the ₹12,500 crore HDB Financial offering earlier this year.

The issue is being managed by heavyweights including Morgan Stanley, JP Morgan, Citigroup, Axis Capital, and BofA Securities, with KFin Technologies acting as the registrar.

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