LG Electronics IPO price band
The issue has been priced between Rs 1,080 and Rs 1,140 per share, with a minimum bid size of 13 shares, amounting to Rs 14,820 at the upper price band. Retail investors can bid up to Rs 2 lakh, while high-net-worth individuals (HNIs) and institutions have higher allocation limits.
GMP and market sentiment
The IPO’s grey market premium (GMP) of around 24% suggests strong early demand, with shares trading hands at about Rs 1,410 in the unofficial market, indicating expectations of a strong listing gain.
Analysts believe the issue has been sensibly priced compared with peers and comes at a time when consumer durables are witnessing a strong demand recovery. The valuation comfort and LG’s dominant market position have attracted positive recommendations from multiple brokerages.
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What brokerages are saying
SBI Securities noted that LG Electronics India stands out among consumer durable peers for its scale, profitability, and strong domestic manufacturing base.”LG Electronics India is one of the largest home appliance and consumer electronics companies in India, with market leadership across multiple product categories. At the upper price band of Rs 1,140, the issue is valued at a P/E multiple of 35.1x, which looks attractive compared with peers. We recommend investors to Subscribe to the issue,” the brokerage said in its note.
Centrum Broking echoed a similar view, highlighting LG’s balance between valuation and brand strength.
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“The IPO is offered at a reasonable valuation of 35x FY25 EPS, compared to peers trading at much higher multiples. Considering the company’s leadership position, strong brand, global parent support, extensive distribution network, and manufacturing strength, we assign a Subscribe rating to the IPO,” said Centrum.
Financials
The company reported a 14% rise in revenue to Rs 24,631 crore in FY25 and a 46% jump in profit after tax to Rs 2,203 crore, with a strong EBITDA margin of 12.8% and PAT margin of 9%. It remains debt-free with a robust ROCE of 43% and ROE of 37%, signaling operational strength.
What’s working for LG
1. Strong market leadership across product categories such as TVs, refrigerators, and air conditioners.
2. Zero debt and high profitability.
3. Attractive pricing compared with peers in the consumer durables space.
4. Expanding manufacturing capacity, including new investments to make India a global production hub.
5. Trusted brand value and parent support from LG Electronics Korea.
Investor outlook
Despite being a pure OFS, which means no fresh funds will flow into the company, the issue has drawn solid interest due to its dominant industry position, consistent growth, and compelling valuation. Analysts believe the IPO’s appeal lies in its mix of brand strength, profitability, and reasonable pricing amid a crowded IPO calendar.
With a 24% GMP and strong institutional participation expected, the listing could mirror the optimism around India’s premium consumer goods sector. However, long-term returns will depend on sustained demand growth, margin stability, and export expansion plans.
Key IPO dates
The subscription period will remain from October 7–9 with allotment expected on October 10. The listing is tentatively set for October 14 on both BSE and NSE.
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