The upcoming LG Electronics India IPO is drawing massive investor attention, buoyed by strong brand credibility and robust financial performance. The IPO grey market premium (GMP) indicates potential listing gains of 22–25%, highlighting bullish investor sentiment.
1. Price Band & Valuation
The IPO has a price band of ₹1,080–₹1,140 per share, valuing LG Electronics India between ₹77,400 crore and ₹80,000 crore (approx. $8.7 billion). At the upper end, the P/E ratio is 47x FY24 earnings, slightly higher than domestic peers such as Voltas, Havells, and Blue Star. Analysts suggest the premium valuation reflects the company’s leadership and profitability.
2. Anchor Investor Allotment
Ahead of the IPO, LG India raised ₹3,475 crore through its anchor book, allotting 3.04 crore shares at ₹1,140 each. Prominent investors such as Abu Dhabi Investment Authority, BlackRock, Goldman Sachs, Government of Singapore, SBI Mutual Fund, and HDFC Mutual Fund participated, signaling strong institutional confidence.
3. Key Dates & Lot Size
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IPO Opens: October 7, 2025
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IPO Closes: October 9, 2025
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Allotment Finalization: October 10, 2025
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Listing Date: October 14, 2025 (expected)
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Lot Size: 13 shares (minimum investment of ~₹14,820 at upper price band)
4. Issue Allocation
The share allocation follows standard norms:
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Qualified Institutional Buyers (QIBs): 50%
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Retail Investors: 35%
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Non-Institutional Investors (NIIs): 15%
5. Company Overview
LG Electronics India is a leading consumer electronics and home appliances brand competing with Samsung, Whirlpool, Godrej, and Voltas. It commands market leadership in categories like TVs, washing machines, refrigerators, and air conditioners. The company operates large manufacturing units in Noida and Pune, supported by an extensive sales and service network nationwide.
In FY24, LG India reported ₹26,782 crore in revenue and ₹1,710 crore in net profit, registering a 10% CAGR over the past three years. The company also announced a $600 million expansion plan to establish a manufacturing facility at Sri City, Andhra Pradesh, to boost exports and domestic capacity.
6. Financial Performance
According to its DRHP, LG India maintains stable operating margins of 9–10% with a Return on Equity (RoE) of 22.6% in FY24. The company operates with minimal debt, reflecting solid cash flow and profitability. However, analysts warn that input cost volatility and foreign exchange risks could pressure margins, given that 46% of raw materials are imported.
7. Key Risks to Watch
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Import Dependence: Nearly half of its components are imported, making it sensitive to currency fluctuations.
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Royalty Payments: LG India pays 2.4% of sales as royalty to its Korean parent for brand and technology usage.
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Tax Dispute: The company faces a ₹4,717 crore tax demand from Indian authorities.
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Competition: Intense pricing pressure from both multinational and domestic players.
8. Grey Market Premium (GMP)
As of today, the LG Electronics India IPO GMP is in the range of ₹250–₹270 per share, implying listing gains of 22–25% over the issue price. Leading brokerages, including Angel One, Motilal Oswal, and Ventura Securities, have issued “Subscribe” recommendations, citing LG’s brand strength, profitability, and long-term growth visibility. However, analysts note that the IPO is fairly priced, suitable for long-term investors rather than short-term traders.
9. Strategic Outlook
The IPO is a significant milestone for LG, offering its Indian subsidiary independent market visibility and valuation. The move aligns with India’s “Make in India” initiative, promoting domestic manufacturing and local sourcing. Analysts believe LG India’s listing could encourage other global brands like Samsung and Whirlpool to consider similar listings in the future.
The LG Electronics India IPO GMP presents a compelling opportunity for investors seeking exposure to India’s fast-growing consumer electronics sector. While the valuation is on the higher side, the company’s strong balance sheet, premium brand equity, and steady growth make it a worthy long-term investment.
Disclaimer: The above analysis is for informational purposes only. Investors are advised to consult financial experts before investing in any IPO.
