Analysts remain bullish on the IPO, and while the grey market premium (GMP) has seen a slight dip from 27% to 25.88%, investor sentiment continues to be positive.
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, LG Electronics India’s IPO is currently commanding a premium of Rs 295, which is approximately 25.88% above the issue price of Rs 1,140. Based on this, the expected listing price could be around Rs 1,435.
Note on GMP: The Grey Market Premium (GMP) reflects informal market sentiment and does not guarantee actual listing performance. Investors are advised to treat it as just one of several indicators when assessing an IPO’s potential.
LG Electronics India IPO Subscription Status
As of the close of Day 2, the LG Electronics India IPO has been oversubscribed 3.32 times overall, indicating strong investor interest across categories.Retail Individual Investors (RIIs) subscribed to 1.90 times the 3.55 crore shares allocated to them.
Non-Institutional Investors (NIIs) exhibited robust demand, bidding for 7.60 times the 1.52 crore shares set aside for their segment.
Qualified Institutional Buyers (QIBs) also participated actively, with subscriptions reaching 2.59 times the allotted 2.03 crore shares.
LG Electronics IPO Details
The LG Electronics India IPO is priced in the range of Rs 1,080 to Rs 1,140 per share. Investors can apply for a minimum lot of 13 shares, requiring an investment of Rs 14,820 at the upper end of the price band.
Retail investors are permitted to bid for amounts up to Rs 2 lakh, while high-net-worth individuals (HNIs) and institutional investors can apply for higher amounts, with proportionate allocation.
Analysts view the IPO as fairly valued relative to industry peers. Its launch comes at a time when the consumer durables sector is witnessing a strong rebound in demand. Backed by LG’s market leadership in key product segments and favorable pricing, the issue has received positive ratings from several brokerage firms.
Brokerage Views: SBI Securities and Centrum Recommend ‘Subscribe’ on LG Electronics India IPO
SBI Securities underscored LG Electronics India’s strong position in the consumer durables sector, citing its scale of operations, consistent profitability, and robust domestic manufacturing capabilities.
“LG Electronics India is one of the largest players in the home appliances and consumer electronics space, with market leadership across several product categories. At the upper price band of Rs 1,140, the IPO is valued at a P/E of 35.1x, which is attractive compared to industry peers. We recommend a Subscribe rating for the issue,” the brokerage noted.
Centrum Broking offered a similar view, highlighting the company’s reasonable valuation and strong brand equity.
“The IPO is priced at a modest 35x FY25E EPS, while listed peers command significantly higher valuations. LG’s dominant market position, brand strength, global backing, extensive distribution, and manufacturing scale support our Subscribe recommendation,” Centrum said in its note.
Financial Performance
In FY25, LG Electronics India delivered a strong financial performance, with revenue rising 14% year-on-year to Rs 24,631 crore. Profit after tax (PAT) surged by 46% to Rs 2,203 crore, driven by solid operational efficiency. The company maintained a healthy EBITDA margin of 12.8% and PAT margin of 9%. Notably, LG remains debt-free, and its impressive Return on Capital Employed (ROCE) of 43% and Return on Equity (ROE) of 37% underscore its robust financial position.
Key Growth Drivers
Market Leadership in key product segments such as televisions, refrigerators, and air conditioners.
Debt-Free Balance Sheet with strong profitability, offering financial flexibility for future growth.
Attractive Valuation compared to listed peers in the consumer durables space.
Manufacturing Expansion, including strategic investments aimed at positioning India as a global manufacturing hub.
Strong Brand Equity, supported by the trusted parent, LG Electronics Korea.
Although the IPO is a pure Offer for Sale (OFS)—meaning no new capital will be infused into the company—it has garnered significant investor interest. This is largely due to LG’s dominant market position, consistent financial performance, and competitive pricing. Analysts believe that the IPO stands out in a crowded issuance calendar, thanks to its combination of brand strength, profitability, and reasonable valuation.
Key IPO Dates
The subscription window for the LG Electronics India IPO is open from October 7 to October 9. The share allotment is expected to be finalized on October 10, with the company likely to debut on the stock exchanges—BSE and NSE—on October 14, subject to regulatory approvals.
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