The initial public offering (IPO) of LG Electronics India Ltd. is set to open tomorrow, October 7, 2025, and will remain open for subscription until October 9, 2025. This main-board IPO aims to raise ₹11,607.01 crore through an offer for sale of 10,18,15,859 equity shares with a face value of ₹10 each.
Price Band and Lot Size
The price band for the IPO has been fixed at ₹1,080 to ₹1,140 per equity share. Investors can apply in lots, with one lot comprising 13 company shares, amounting to a total investment of ₹14,820 at the upper price band. For small non-institutional investors (sNII), the minimum bid is 14 lots (182 shares), requiring an investment of ₹2,07,480, while for big non-institutional investors (bNII), the minimum application is 68 lots (884 shares), amounting to ₹10,07,760.
Grey Market Premium (GMP)
Ahead of the IPO opening, shares of LG Electronics India Ltd. are trading in the grey market at a premium. According to market observers, the Grey Market Premium (GMP) is around ₹228-₹250 today. This suggests that the shares are expected to list at ₹1,368-₹1,390, a potential gain of approximately 20% over the upper end of the price band. However, it is important to note that GMP is just an indicator and not a guarantee of listing performance.
IPO Details
The LG Electronics IPO is entirely an offer for sale (OFS), meaning that the proceeds will go to the promoter, LG Electronics Inc. of South Korea, and not to the Indian subsidiary. The company is offloading 10.18 crore shares, constituting 15% of the post-offer paid-up share capital. The IPO is proposed for listing on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The tentative listing date is October 14, 2025.
Key Dates
- IPO Opening Date: October 7, 2025
- IPO Closing Date: October 9, 2025
- Allotment Finalization: October 10, 2025
- Demat Account Credit: October 13, 2025
- Listing Date: October 14, 2025
Company Overview
LG Electronics India Ltd. is a leading player in the home appliances and consumer electronics industry in India. The company manufactures and distributes a wide range of products, including refrigerators, washing machines, air conditioners, and televisions. It has two manufacturing facilities located in Noida and Pune, with local manufacturing accounting for approximately 97–98% of its product output. As of June 30, 2024, LG Electronics India is supported by 31,291 sub-dealers and had over 36,000 B2C touchpoints.
Financial Performance
LG Electronics India Ltd. has demonstrated consistent financial growth in recent years. The company's revenue increased by 14% and profit after tax (PAT) rose by 46% between the financial year ending March 31, 2025, and March 31, 2024. For the last three fiscals, the company has posted an average EPS of ₹26.95 and an average RoNW of 37.24%.
Book Running Lead Managers and Registrar
Morgan Stanley India, JP Morgan India, Axis Capital, BofA Securities, and Citigroup Global Markets India have been appointed as the book-running lead managers for the IPO. KFin Technologies Ltd. is the registrar for the issue.
Concerns
Analysts have advised investors to subscribe to the IPO, but cautioned that since the issue is purely an offer for sale, the proceeds will go to the company's promoter, LG Electronics Inc., and not to its Indian subsidiary. This could affect the company's long-term growth prospects.
Disclaimer: This article is for informational purposes only and should not be considered as investment advice. It is important to conduct thorough research and consult with a financial advisor before making any investment decisions.
