LG Electronics India has made a spectacular debut on the stock market, surging 50% above its IPO price and seemingly eclipsing its South Korean parent company in market valuation. The IPO, which closed on October 9, 2025, was oversubscribed by a massive 54.02 times, demonstrating strong investor confidence in the Indian arm of the consumer electronics giant.
Shares of LG Electronics India opened at ₹1,715 on the Bombay Stock Exchange (BSE) and ₹1,710.10 on the National Stock Exchange (NSE), a significant jump from the IPO price of ₹1,140. This impressive listing has valued LG Electronics India at approximately ₹77,400 crore. The ₹11,607 crore IPO was entirely an offer for sale by LG Electronics Inc., the parent company based in South Korea.
The overwhelming response to the IPO was driven by substantial interest from institutional investors. Qualified Institutional Buyers (QIBs) oversubscribed by 166.51 times, while Non-Institutional Investors (NIIs) subscribed 22.44 times, and Retail Individual Investors (RIIs) subscribed 3.54 times. The strong demand underscores the positive sentiment surrounding consumer-focused manufacturing companies in India's thriving equity market.
Analysts believe that LG Electronics India's attractive valuation and strong business prospects fueled the IPO's success. The company's robust financial performance in fiscal year 2025, with a 14% year-on-year increase in revenue to ₹24,631 crore and a 46% surge in profit after tax to ₹2,203 crore, has further bolstered investor confidence. The company has maintained healthy financial metrics, including an EBITDA margin of 12.8%, a PAT margin of 9%, and a debt-free status, along with a return on capital employed (ROCE) of 43% and a return on equity (ROE) of 37%.
Several brokerages have given "Buy" ratings to LG Electronics India's stock. Emkay Global has set a target price of ₹2,050, implying an 80% upside, citing the company's brand equity, diversified category leadership, and strategic importance within its parent's global expansion plans. Nomura has also given a "Buy" rating with a target price of ₹1,800, anticipating improved EBITDA margins and strong revenue and EPS growth. ICICI Securities also backs the stock with a Buy rating.
LG Electronics India holds a dominant position in key product segments, including washing machines, refrigerators, air conditioners, and televisions. The company's revenue share for its parent LG Electronics has increased from 3.5% in CY21 to 4.3% in CY24, highlighting the growing importance of the Indian market. Furthermore, LG India's revenue from operations stood at ₹24,367 crore in FY25, surpassing that of Havells, Voltas, Blue Star, and Whirlpool.
The company's strengths lie in its premium segment leadership, growth potential due to low category penetration and expanding total addressable market, increasing exports with the expansion of its Sri City plant, and strong financials with high return ratios and consistent revenue growth.
LG Electronics India's successful IPO is expected to encourage other Indian companies to go public. India has become an increasingly active market for IPOs in recent years, attracting global investors eager to tap into the country's expanding consumer economy. The LG Electronics India IPO is strategically timed before Diwali, a festive season when Indian consumers tend to spend more on electronics and home appliances.
