It’s decision day for investors eyeing a piece of India’s booming consumer electronics market. The initial public offering (IPO) of LG Electronics India Ltd., a subsidiary of the South Korean giant, closes for subscription today, October 9, 2025. This mammoth ₹11,607 crore IPO has garnered significant attention, showcasing strong investor appetite for a well-established brand in the Indian household.
LG India’s Market Debut
For decades, the LG logo, with its distinctive “smiley,” has been a familiar sight in Indian homes – adorning refrigerators, televisions, and washing machines. Now, the company isn’t just seeking a place in your living room but also in your investment portfolio. The IPO, which commenced on October 7, is a pure Offer for Sale (OFS), meaning the parent company, LG Electronics Inc. from South Korea, is divesting a portion of its stake. This move allows the Korean parent to unlock value from its nearly three-decade-long investment in its highly successful Indian arm, with no fresh funds flowing into the Indian entity.
The IPO offered 10.18 crore shares in a price band of ₹1,080 to ₹1,140 apiece. Investors could bid for a minimum lot of 13 shares, translating to a minimum investment of ₹14,820 at the upper end of the price band. The issue has seen robust demand, with an overall subscription of 3.33 times by the end of Day 2, October 8, 2025.
Strong Fundamentals Meet Enthusiastic Bidding
The robust subscription figures underscore investor confidence in LG India’s market dominance and financial health. Qualified Institutional Buyers (QIBs) subscribed to their portion 2.59 times, while the Non-Institutional Investors (NII) segment saw an impressive 7.60 times subscription. Retail investors showed solid interest with a 1.91 times subscription, and employees, too, participated enthusiastically, bidding 4.12 times their reserved portion.
Financially, LG Electronics India has been a consistent performer. In FY25, the company reported a revenue of ₹24,367 crore, a 14% year-on-year growth, with profit after tax (PAT) jumping 46% to ₹2,203 crore. This strong growth trajectory positions the company favorably. At the upper end of the price band, the IPO values LG India at approximately ₹77,380-80,000 crore, with a P/E ratio of 35.1 times its FY25 earnings, which analysts consider attractive compared to some peers.
The grey market premium (GMP) for LG Electronics India IPO has also been healthy, hovering around ₹300-315. This indicates an estimated listing price of approximately ₹1,440 to ₹1,455 per share, suggesting a potential listing gain of around 26-27% over the upper IPO price. However, it’s always prudent to remember that GMP is an unofficial indicator and subject to market sentiment.
The India Angle: A Leader in the Home
LG Electronics India isn’t just another player; it’s a market leader across several key categories. The company commands a dominant market share of 33.5% in washing machines, 29.9% in refrigerators, 27.5% in panel TVs, and 20.6% in inverter ACs, based on offline sales value. This extensive reach is supported by a robust distribution and service network, including 25 warehouses, 949 service centres, and over 36,000 B2C touchpoints across India. The company’s focus on localization and plans for a third plant in Andhra Pradesh further underscore its commitment to the Indian market.
Unlocking Value and Future Growth
The IPO signifies a strategic move by the parent company to highlight the intrinsic value of its Indian operations, which has grown to be a significant contributor to the global entity. While the IPO proceeds will not directly flow into the Indian subsidiary, the listing itself enhances the company’s visibility, credibility, and access to capital markets, potentially strengthening partnerships and investor confidence for future growth. As India’s consumer durable market continues to expand, LG India is well-positioned to capitalize on this growth, backed by its established brand, extensive network, and strong financials.
As the bidding curtains fall today, the spotlight now shifts to the allotment process and the much-anticipated listing, tentatively scheduled for October 14, 2025. For a brand that has been a household name for decades, its public listing marks a new and exciting chapter, offering Indian investors a direct stake in a leading consumer electronics powerhouse.
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