Today marks the final day for investors to subscribe to the Initial Public Offering (IPO) of LG Electronics India. The IPO has garnered significant attention, with the issue being subscribed 3.4 times so far. The IPO, which opened on October 7, 2025, closes today, October 9, 2025.
Subscription Status
By the end of Day 2, the IPO had been subscribed 3.32 times. The retail portion was booked 1.90 times, while the Non-Institutional Investors (NII) segment was filled 7.60 times. The Qualified Institutional Buyers (QIB) portion was subscribed 2.59 times. As of 10:14 AM today, the IPO has been booked 3.70 times.
Grey Market Premium (GMP)
Market observers are closely watching the Grey Market Premium (GMP), which provides an unofficial indication of the expected listing gains. Today, the GMP for LG Electronics India's IPO is ₹298, a slight decrease from yesterday's ₹312. Despite the dip, the grey market still indicates a robust return for potential investors. Some reports indicate a GMP of ₹300 as of today, October 9, 2025, at 8:00 AM, suggesting an estimated listing price of ₹1,440, which translates to a potential gain of 26.32% per share. It's important to remember that the GMP is based on market sentiment and speculation and doesn't guarantee listing performance.
IPO Details
LG Electronics India is offering shares in the price band of ₹1,080 to ₹1,140 per equity share. The IPO aims to raise ₹11,607.01 crore, entirely through an offer for sale (OFS). The lot size is 13 shares, requiring a minimum investment of ₹14,820 at the upper price band. The IPO is proposed for listing on both the BSE and NSE. The allotment date is expected to be October 10, 2025, and the tentative listing date is October 14, 2025.
Financial Performance and Valuations
LG Electronics India has demonstrated strong financial performance compared to its listed peers. For FY25, the company's Earnings Per Share (EPS) stood at ₹32.46, the highest among its peers. The Return on Net Worth (RoNW) for FY25 was a healthy 37.13%, significantly outperforming its competitors. In FY25, LG Electronics India reported revenue of ₹24,367 crore with a PAT margin of 8.95% and an EBITDA margin of approximately 12.75%.
Market capitalization of the LG Electronics IPO is ₹77,380.05 crore. At the upper price band of ₹1,140, the stock is priced at a P/E of 35.1x, which analysts consider fair compared to peers.
Analyst Recommendations
Analysts have expressed optimism about the IPO, citing the company's strong growth visibility, innovation pipeline, and extensive distribution network. Several brokerages have assigned a "Subscribe" rating to the IPO. One analyst noted that valuations at 35x FY25 earnings are justified given LG's dominant market position and superior return ratios.
Key Strengths and Risks
LG Electronics India possesses several strengths, including a leading market share in key product categories, a strong brand image, a wide distribution network, and robust financial performance. However, potential risks include intense competition in the Indian market, margin pressures, pending tax claims, and volatility in raw material costs. Also, the IPO is entirely an OFS, meaning the company will not receive any fresh capital for growth.
Should You Apply?
The decision to apply for the LG Electronics India IPO depends on individual investment goals and risk appetite. The company's strong fundamentals, market leadership, and reasonable valuations make it an attractive option for long-term investors. However, investors should carefully consider the risks and conduct their own due diligence before investing. Short-term investors may consider applying for listing gains, given the strong GMP trends.
