LG Electronics India IPO Day 3: Strong Subscription, Stable GMP Signal Investor Confidence in ₹11,607 Cr Offer

LG Electronics India IPO Day 3

The ₹11,607 crore initial public offering (IPO) of LG Electronics India has entered its final day of bidding on October 9, 2025, with robust investor interest and a steady grey market premium (GMP) indicating positive sentiment. The IPO, entirely an offer for sale (OFS) by Korean parent LG Electronics Inc, has been oversubscribed 3.32 times by the end of Day 2, with strong traction across retail, institutional, and high-net-worth investor categories.

Grey Market Premium and Expected Listing Price

As of Day 3 morning, the LG Electronics India IPO is commanding a GMP of ₹295, approximately 25.88% above the upper issue price of ₹1,140. This suggests a potential listing price of around ₹1,435. While the GMP dipped slightly from ₹312 the previous day, analysts attribute this to minor profit booking in the secondary market and maintain that the premium remains healthy.

LG Electronics India IPO GMP Trend

DateGMP (₹)Premium Over Issue Price (%)Sentiment Indicator
October 7₹25021.9%Moderate
October 8₹31227.4%Strong
October 9₹29525.88%Stable

Subscription Status Across Investor Categories

By the close of Day 2, the IPO had received bids for 23.71 crore shares against 7.13 crore shares on offer, translating to an overall subscription of 3.32 times. The Non-Institutional Investor (NII) segment led the charge with 7.60x subscription, followed by Qualified Institutional Buyers (QIBs) at 2.59x and Retail Individual Investors (RIIs) at 1.90x.

LG Electronics India IPO Subscription Snapshot (Day 2)

Investor CategoryShares Offered (Cr)Subscription (x)
Retail (RII)3.551.90
Non-Institutional1.527.60
QIB2.032.59
Overall7.133.32

IPO Details and Investment Thresholds

The IPO is priced in the range of ₹1,080 to ₹1,140 per share. Investors can apply for a minimum lot of 13 shares, requiring an investment of ₹14,820 at the upper end. Retail investors can bid up to ₹2 lakh, while HNIs and institutions have no cap, subject to proportionate allocation.

IPO Structure and Financial Highlights

LG Electronics India’s IPO is entirely an OFS, with 10.18 crore shares being divested by LG Electronics Inc. The company is a market leader in home appliances and consumer electronics, with dominant positions in air conditioners, refrigerators, washing machines, and smart TVs.

In FY25, LG Electronics India reported:

  • Revenue: ₹24,367 crore (YoY growth of 14.1%)
  • EBITDA: ₹3,110 crore
  • Net Profit: ₹2,203 crore
  • EBITDA Margin: 12.8%
  • PAT Margin: 9.0%
  • Price-to-Earnings (P/E) Ratio: 35.1x at upper band

Brokerage Views and Investment Outlook

Brokerages including SBI Securities, Centrum Broking, Sharekhan, and Ventura Securities have assigned a ‘Subscribe’ rating, citing LG’s strong brand equity, manufacturing scale, and reasonable valuation compared to peers.

  • SBI Securities: “At ₹1,140, the IPO is attractively priced. LG’s scale, profitability, and leadership justify a subscribe call.”
  • Centrum Broking: “Valuation at 35x FY25E EPS is modest. LG’s brand strength and distribution network support long-term growth.”
  • Sharekhan: “Strong fundamentals and global backing make this IPO a compelling opportunity.”

Peer Comparison in Consumer Durables Sector

CompanyFY25 Revenue (₹ Cr)P/E RatioMarket Cap (₹ Cr)
LG Electronics India24,36735.1x77,380
Whirlpool India6,80042.5x18,200
Voltas9,20039.8x28,500
Blue Star8,10041.2x24,700

Should You Invest?

With strong fundamentals, a stable GMP, and positive brokerage sentiment, LG Electronics India’s IPO presents a compelling investment opportunity, especially for long-term investors seeking exposure to the consumer durables sector. The company’s leadership, profitability, and brand strength offer resilience amid competitive pressures.

Disclaimer: This news content is based on publicly available financial data, brokerage reports, and verified market insights as of October 9, 2025. It is intended for editorial use and public awareness. The information does not constitute investment advice or endorsement and adheres to ethical journalism standards.

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