LG India's successful stock market debut on October 14, 2025, has sparked renewed optimism regarding large IPOs in the Indian market. The ₹11,607 crore IPO, a complete offer for sale by LG Electronics Inc., the Korean parent company, witnessed an overwhelming response, being oversubscribed 54 times. This stellar listing, debuting at a 50% premium over the issue price of ₹1,140, has set a new benchmark, especially considering the struggles some large IPOs face in maintaining momentum post-listing.
The IPO opened for subscription on October 7, 2025, and closed on October 9, 2025. The strong investor interest was evident across all categories, with the qualified institutional buyers' (QIBs) portion subscribed 165.5 times, the non-institutional investors' (NIIs) portion subscribed 22.45 times, and the retail investors' portion subscribed 3.55 times. The employee portion was booked 7.62 times. This resounding success highlights the strong confidence investors have in India's growth narrative.
On the Bombay Stock Exchange (BSE), LG Electronics India's stock commenced trading at ₹1,715, a 50.5% premium, and on the National Stock Exchange (NSE) at ₹1,710.10. While the stock experienced some fluctuations post-listing, it maintained significant gains, reflecting sustained investor interest. The listing price surpassed grey market estimates, where unlisted shares traded at a premium, further indicating strong market anticipation.
Several factors contributed to the IPO's success. LG's brand positioning, robust financial performance, and the increasing contribution of the Indian business to global revenues played a crucial role. Analysts also believe that recent reductions in GST rates, income tax, and interest rates will boost growth for most categories in FY27-28E, benefiting LG. The company's debt-free status, consistent ROE exceeding 30%, and stable EBITDA margins above 10% also instilled investor confidence.
The strong listing of LG Electronics India has boosted India's position as a major IPO market. Despite foreign investors selling in the secondary market, their participation as anchor investors in IPOs demonstrates continued faith in India's growth story. India has the fourth-largest fundraise globally via IPOs in 2025, with $14.2 billion raised.
Analysts have given 'Buy' ratings, citing LG India's tech-led innovation, premium brand positioning, in-house manufacturing, global parentage, and extensive distribution network. These factors enable the company to maintain pricing power and deliver industry-leading margins. Projections indicate revenue and EBITDA CAGR of 11% and 13%, respectively.
The success of the LG India IPO could pave the way for other large IPOs in the pipeline. It demonstrates that strong fundamentals, attractive valuations, and positive market sentiment can lead to successful listings, even for large issues. This listing has set a high standard and provided a template for future companies looking to tap the Indian capital market.
