LG Electronics India IPO Analyzed
Key Points
- Huge Demand: Investors bid over 4.4 trillion rupees for LG’s IPO.
- Institutional Investors: Subscription 151 times oversubscribed.
- Retail Investors: 3.4 times subscription, high demand.
- Record IPO: Eighth largest in Indian market history.
- Valuation Attractive: Priced below previous media reports.
- Strong Outlook: Expected to grow with market leadership.
LG India IPO Details
LG Electronics India’s (LGEIL) initial public offering (IPO) was an enormous success, attracting investor interest on a massive scale. The total value of bids exceeded Rs 4.4 trillion, marking the largest IPO in India since 2020.
The IPO saw a staggering 54 times more demand than the number of shares being offered. This means that many more people wanted to buy shares in LG India than the company actually made available. The portion specifically for institutional investors – large companies and investment firms – was an incredible 151 times oversubscribed, further demonstrating strong confidence.
While retail investors (ordinary people) and high-net-worth individuals also showed considerable interest, with subscriptions 3.4 times and 22 times higher than the shares offered. This overall level of demand reflects the positive perception of LG’s potential growth and market position.
This record-breaking IPO was the eighth largest in the domestic Indian market. It was entirely an “offer for sale,” meaning the South Korean parent company, LG Electronics, was the only one selling shares. They divested 15% of their stake in the Indian arm.
The IPO was closely timed with Hyundai Motor India’s successful listing, indicating a favorable environment for initial public offerings in the country. Despite Hyundai’s significantly larger IPO, LG’s attracted far more interest.
Despite the excitement, analysts noted that the Indian arm of LG was valued at approximately Rs 77,400 crore, which was lower than some earlier estimates. However, this valuation was seen as attractive compared to other similar companies, driving the high demand.
Investors were particularly attracted to LG’s strong financial performance. The company reported a net profit of Rs 2,203 crore on revenue of Rs 24,631 crore for the fiscal year 2025. This, combined with a 45% return on equity, made it a compelling investment option.
LG faces competition from major players like Voltas, Havells, and Samsung within the Indian market. The company currently holds the second-largest market share in appliances and electronics after Samsung. Analysts expect continued growth for LG due to the sector’s strong potential and LG’s established brand.
Early indications, such as the “grey market premium” – an unofficial estimate of the stock’s price before listing – suggest a potential 30% increase in value upon its official listing. This highlights strong pre-listing investor confidence.
“LG’s IPO is a clear sign of India’s growing investment market and a bright future for the company.”
