The initial public offering (IPO) of LG Electronics India, a subsidiary of LG Electronics Inc., Korea, a leading global single-brand home appliance player, witnessed healthy demand from both retail and non-institutional investors on its first day of bidding.
The IPO, which remains open until Thursday, October 9, received bids for 7.45 crore shares against the total offer of 7.13 crore shares, resulting in an overall subscription of 1.05 times by the end of Day 1, according to exchange data.
Non-institutional buyers showed strong interest, with their portion subscribed 2.31 times, while retail investors also displayed notable enthusiasm, with their portion booked 0.82 times.
The QIB quota was subscribed 0.49 times. Meanwhile, the employee portion saw strong demand, being booked 1.90 times.
LG Electronics India IPO details
The LG Electronics India IPO is a book-built issue worth ₹11,607 crore, entirely comprising an offer for sale (OFS) of 10.2 crore shares. The price band for the issue has been set between ₹1,080 and ₹1,140 per share.
Retail investors can apply for a minimum of 13 shares in one lot and up to 13 lots. At the upper end of the price band, ₹1,140 per share, retail investors are required to make a minimum investment of ₹14,820 per lot.
The IPO proceeds will not be utilized by LG Electronics India but will help the promoter unlock value from its investment in the company. LG Electronics currently operates two manufacturing units located in Noida and Pune, with a total capacity to produce 1.45 crore products annually and an aggregate capacity utilization rate of around 77% for FY25.
As part of its expansion plans in India, the company intends to establish a third manufacturing facility in Andhra Pradesh with an investment of ₹5,000 crore.
On the financial front, LG’s performance has been strong, with topline growth of 10.8% CAGR and PAT growth of 28% CAGR between FY23 and FY25. During the same period, margins expanded by 320 bps, with FY25 EBITDA margin at 12.8%, according to domestic brokerage firm Nirmal Bang.
GMP signals over 27% premium
As of today, the grey market premium (GMP) for the LG Electronics India IPO stands at ₹312 per share, suggesting that the stock is likely to list above its issue price. Based on this GMP and the upper price band, the estimated listing price is ₹1,452, reflecting a 27.36% premium over the upper issue price of ₹1,140 per share.
The GMP represents the expected difference between an IPO’s issue price and its anticipated listing price in the unofficial market. However, it’s important to note that the GMP is merely an early indicator and should not be relied upon as the sole factor in investment decisions.
About LG Electronics India
LG Electronics India is among the leading players in the major home appliances and consumer electronics segment (excluding mobile phones) in India, primarily catering to the offline channel. The company holds a leading position across product categories such as washing machines, refrigerators, panel TVs, inverter air conditioners, and microwaves.
Refrigerators contribute 27% of the company’s FY25 revenue of ₹24,367 crore, followed by washing machines and air conditioners, accounting for 21% and 22%, respectively.
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