The much-awaited LG Electronics India IPO 2025 opened to a powerful response from investors, crossing full subscription within hours of opening on Day 1. The ₹11,607-crore public issue by the consumer electronics giant reflects strong investor confidence in LG’s business model, profitability, and leadership in India’s appliance market.
According to data released by the NSE, the IPO was 1.07 times subscribed overall on the first day. The retail investor category was subscribed 1.08 times, while non-institutional investors (HNI/NII) bid for 1.36 times their quota. Qualified institutional buyers (QIBs) subscribed around 0.92 times, a figure expected to surge as the issue progresses. (LG Electronics India IPO 2025)
The IPO, open from October 7 to October 9, 2025, is one of the largest offerings this year and has drawn substantial interest from both domestic and international investors. The anchor book, completed on October 6, successfully raised ₹3,480 crore, with key investors such as SBI Mutual Fund, HDFC Mutual Fund, ICICI Prudential, Fidelity International, and Abu Dhabi Investment Authority (ADIA) among participants.
Key Details and Valuation
The LG Electronics India IPO 2025 consists solely of an Offer for Sale (OFS) of 10.18 crore shares by parent company LG Electronics Inc. The price band has been fixed at ₹1,080–₹1,140 per share, valuing the company at around ₹77,800 crore at the upper end.
Since this is an OFS, no new shares are being issued, and all proceeds will go to the South Korean parent company. The implied price-to-earnings (P/E) ratio stands at roughly 35x FY24 earnings, which analysts consider reasonable given the company’s strong margins, established brand, and zero debt structure.
Strong Fundamentals and Financial Highlights
LG Electronics India has shown consistent growth and profitability over the years. For FY2024, it reported revenue of ₹21,352 crore and a net profit of ₹1,511 crore, marking a 7.5% year-on-year growth.
In Q1 FY2025, the company clocked ₹6,337 crore in revenue and ₹513 crore in profit, sustaining double-digit returns. The Return on Net Worth (RoNW) stands at 40.45%, while Return on Capital Employed (RoCE) is 45.3%, reflecting efficient capital management.
With one of the largest distribution networks in India and strong brand equity, LG commands a leading position across televisions, refrigerators, and air conditioners. The company’s financial health, combined with India’s expanding middle-class consumption, offers solid long-term potential.
Investor Sentiment and Grey Market Premium
The grey market premium (GMP) for the LG Electronics India IPO 2025 surged to ₹140–₹160 per share, indicating a 12–15% potential listing gain. Market watchers suggest that the blend of brand power, profitability, and large-cap stability has attracted both institutional and retail enthusiasm.
Analysts expect the IPO to witness multi-fold oversubscription by closing day, mirroring earlier high-demand listings in 2025. The company is scheduled to list on the NSE and BSE on October 14, 2025.
Opportunities and Key Risks
While investor appetite is strong, analysts caution that the IPO is entirely an Offer for Sale, meaning the company will not raise fresh capital. In addition, LG India carries contingent liabilities of around ₹4,700 crore from pending tax claims and pays royalties to its parent for intellectual property.
However, experts still recommend a “Subscribe for Long-Term” view. They cite LG’s stable revenue base, premium positioning, high returns on equity, and strong governance structure as reasons to stay optimistic.
“LG Electronics India combines a global brand with local strength. Despite being an OFS, its fundamentals, profitability, and steady cash flows make it an attractive long-term portfolio stock,” said a Mumbai-based market analyst.
Final Outlook
The LG Electronics India IPO 2025 is shaping up as one of the strongest large-cap entries this year, highlighting the continuing investor appetite for established, cash-generating companies. With India’s consumer electronics market poised for steady expansion, LG’s deep market presence and consistent earnings provide a compelling growth narrative.
If grey market trends and investor enthusiasm continue, LG Electronics India is expected to debut with a double-digit listing gain on October 14, 2025, reinforcing its reputation as a trusted, premium brand in India’s booming consumption story.
