LG Electronics India IPO: Strong GMP Signals Listing Gains, Is It Worth Investing?

The LG Electronics India Ltd IPO, which opened on October 7, 2025, has already attracted strong investor interest, with early signals pointing to a positive listing. The Rs 11,607 crore offer is a 100% Offer for Sale (OFS) by its global parent, LG Electronics Inc., with a price band of Rs 1,080–1,140 per share.

Grey Market Premium Indicates Optimism

Reports suggest a Grey Market Premium (GMP) of Rs 318, implying a potential listing price of around Rs 1,458 per share, nearly 28% above the upper end of the price band. This reflects robust market sentiment and confidence in the company’s prospects.

IPO Subscription Update

On the first day, subscription numbers as of 12:30 pm showed:

• Overall subscription: 37%

• Qualified Institutional Buyers (QIBs): 4% of quota

• Retail investors: 41% of quota

• Non-Institutional Investors: 75% of quota

• Employee portion: Fully subscribed

These figures indicate strong interest while leaving substantial room for participation in the remaining IPO period.

Company Overview

LG Electronics India, incorporated in 1997, is a major player in the consumer electronics and home appliances market, including:

• Refrigerators

• Washing machines

• Air conditioners

• Televisions

• Microwaves

Approximately 77% of sales come from offline retail, supported by 35,000+ retail touchpoints. Manufacturing is concentrated in Noida and Pune, producing around 85% of total sales. Additionally, LG India is investing $600 million in a new Andhra Pradesh plant to make India a global export hub.

Is It a Good Investment?

Brokerages including Angel One, Motilal Oswal, and Ventura Securities have recommended subscribing, citing LG India’s:

• Strong brand equity

• Market leadership

• Solid financial performance

The company’s track record of innovation, including 4K, Smart TVs, and OLED TVs, further boosts investor confidence.

However, some analysts caution that the IPO is fairly priced, with a price-to-book ratio of 4.2–4.3 times at the upper band, limiting immediate listing gains.

For long-term investors, LG Electronics India presents an opportunity to participate in a company with strong brand presence, leadership in key product categories, and expansion plans. Investors should, however, consider high valuations and market risks, such as consumer sentiment shifts and competition in the electronics and appliances segment.

Key Takeaways

• GMP points to positive listing prospects

• IPO subscription shows strong retail and employee interest

• Company fundamentals support long-term investment potential

• Investors should assess risk appetite and consult advisors before subscribing

(Disclaimer: Views expressed in this article are from experts/brokerages and do not reflect the AIS Group. Consult a qualified broker or financial advisor before investing.)