The IPO, which closes on October 9, is entirely an offer for sale (OFS), with the Korean parent LG Electronics Inc divesting 10.18 crore shares.
LG Electronics India IPO GMP Today:
In the grey market, the IPO is currently trading at a premium of Rs 305, which is approximately 26.75% above its issue price of Rs 1,140. This suggests a potential listing price of around Rs 1,445.”GMP Note: Grey Market Premium (GMP) reflects unofficial market sentiment and is not a guarantee of actual listing performance. Investors should consider it as one of many factors when evaluating an IPO.
LG Electronics India IPO Subscription Status – Day 1 Update:
At the close of Day 1, the LG Electronics India IPO has been subscribed 1.04 times overall, indicating a positive but measured response from investors so far.Retail Individual Investors (RIIs) have subscribed to 81% of the 3.55 crore shares allocated to them.Non-Institutional Investors (NIIs) showed strong interest, subscribing 2.31 times the 1.52 crore shares reserved for this category.
Qualified Institutional Buyers (QIBs) have subscribed to 49% of their allocated 2.03 crore shares.
This early data reflects robust interest from NIIs and a decent start among retail and institutional investors, with further movement expected in the coming days as the IPO progresses.
LG Electronics IPO price band
The IPO is priced in the range of Rs 1,080 to Rs 1,140 per share. The minimum bid lot is 13 shares, which translates to an investment of Rs 14,820 at the upper price band.
Retail investors can place bids up to Rs 2 lakh, while high-net-worth individuals (HNIs) and institutional investors are allowed higher investment and allocation limits.
Analysts believe the LG Electronics India IPO is reasonably priced compared to its peers, launching at a time when the consumer durables sector is seeing a robust recovery in demand. The combination of valuation comfort and LG’s dominant position across key product categories has led to positive recommendations from several brokerage firms.
Brokerage Commentary
SBI Securities highlighted LG Electronics India’s standout position among its consumer durable peers, citing its scale, profitability, and robust domestic manufacturing capabilities.
“LG Electronics India is one of the largest home appliance and consumer electronics companies in India, holding market leadership across various product segments. At the upper price band of Rs 1,140, the IPO is valued at a P/E of 35.1x, which appears attractive relative to peers. We recommend investors to Subscribe to the issue,” SBI Securities stated in its report.
Centrum Broking echoed a similar sentiment, noting the company’s balanced valuation and strong brand equity.
“The IPO is priced at a reasonable 35x FY25E EPS, whereas listed peers are trading at significantly higher multiples. Given LG’s market leadership, brand strength, global parentage, extensive distribution network, and manufacturing scale, we assign a Subscribe rating to the issue,” Centrum commented.
Financial Performance
In FY25, LG Electronics India reported a 14% year-on-year increase in revenue, reaching Rs 24,631 crore, while profit after tax surged 46% to Rs 2,203 crore. The company maintained a healthy EBITDA margin of 12.8% and a PAT margin of 9%, underscoring strong operational efficiency. Importantly, LG remains debt-free and posted an impressive Return on Capital Employed (ROCE) of 43% and Return on Equity (ROE) of 37%, reflecting its robust financial health.
Key Strengths Driving LG’s Growth
Market Leadership in core categories like televisions, refrigerators, and air conditioners.
Debt-Free Balance Sheet combined with high profitability, providing financial flexibility.
Competitive Valuation relative to other players in the consumer durables sector.
Manufacturing Expansion, including strategic investments to position India as a global manufacturing hub.
Strong Brand Equity, backed by trusted parent company 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.
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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