Mumbai, October 2025

The Initial Public Offering (IPO) of LG Electronics India has created history in the Indian stock market. The IPO received a massive response from investors, being subscribed 54 times and attracting bids worth over ₹4.4 trillion, setting one of the biggest records of 2025.

A Historic Response

The LG Electronics India IPO opened for subscription earlier this week and closed with overwhelming demand from retail investors, institutional buyers, and high-net-worth individuals (HNIs).

According to data from stock exchanges, the company received bids for more than 270 crore shares against the 5 crore shares offered. This means there was a demand for every share 54 times over — a clear sign of investor confidence in LG’s growth potential in India.

Breakdown of Subscription

• Qualified Institutional Buyers (QIBs): Subscribed about 120 times
• Non-Institutional Investors (HNIs): Subscribed around 60 times
• Retail Investors: Subscribed about 25 times

Such numbers reflect how LG Electronics India’s strong brand reputation and financial performance have appealed to every category of investor.

IPO Details

• IPO Size: ₹8,000 crore (approx.)
• Price Band: ₹490 – ₹510 per share
• Lot Size: 29 shares per lot
• Face Value: ₹10 per share
• Listing Exchange: NSE and BSE
• IPO Dates: Opened on October 2 and closed on October 4

The IPO included both a fresh issue of shares and an offer for sale (OFS) by the South Korean parent company, LG Electronics Inc., which continues to hold a majority stake.

What Made the IPO So Attractive

1. Strong Brand Legacy:
   LG has been one of India’s most trusted consumer electronics brands for over two decades, known for products like televisions, washing machines, refrigerators, and air conditioners.
2. Steady Growth:
   The company’s Indian operations have shown steady revenue and profit growth, especially with rising consumer demand in rural and urban areas.
3. Make in India Advantage:
   LG manufactures a large part of its products in India, aligning well with the government’s Make in India and Atmanirbhar Bharat initiatives.
4. Expansion Plans:
   LG plans to invest heavily in smart appliances, green energy-based products, and EV components manufacturing, which has attracted long-term investors.
5. Healthy Financials:
   Analysts noted that LG’s balance sheet is strong with low debt, consistent cash flows, and high return ratios — key reasons for the huge investor turnout.

Analyst Views

Market experts believe that LG Electronics India’s IPO success mirrors investor faith in large, profitable consumer-durable companies.

“LG’s dominance in home appliances, combined with its innovation in smart technology, makes it a long-term value stock,” said Anand Deshpande, senior analyst at Motilal Oswal.

Brokerage firms like ICICI Securities, HDFC Securities, and Angel One had all given a “Subscribe for Long Term” rating before the IPO opened.

According to analysts, investors expect strong listing gains as well as steady long-term returns given LG’s stable business model and leadership in its segment.

Grey Market Premium (GMP)

Before the listing, the IPO commanded a Grey Market Premium (GMP) of around ₹180–₹200 per share, indicating robust demand.

This means the stock was expected to list at a price of around ₹700–₹710, significantly above the issue price of ₹510. Market watchers believe the final listing could be even higher given the scale of oversubscription.

Comparison with Other Major IPOs

The response to LG Electronics India’s IPO has surpassed several recent blockbusters like:

• Tata Capital IPO (subscribed 38 times)
• MediAssist IPO (subscribed 30 times)
• Navi Technologies IPO (subscribed 25 times)

This record demand puts LG among the top five most-subscribed IPOs in Indian stock market history.

What Happens Next

After the closure of the subscription period, the next key events include:

1. Allotment of Shares: Expected around October 7, 2025
2. Refunds Initiated: Around October 8, 2025
3. Listing on NSE/BSE: Tentatively October 10, 2025

Investors are eagerly waiting for the listing day, expecting strong debut gains in double digits due to the extraordinary demand.

LG’s Future Growth Plans

LG Electronics India aims to use the funds from the IPO for business expansion, manufacturing capacity upgrades, and R&D investments.

The company plans to strengthen its smart appliance segment, build eco-friendly production facilities, and enhance its after-sales service network across Tier-2 and Tier-3 cities.

Additionally, LG has announced plans to invest in EV component manufacturing and AI-based home devices, signaling its ambition to stay ahead of industry trends.

Industry Experts Speak

Industry observers say that LG’s IPO success also highlights the booming confidence in India’s consumer-durables and electronics sector.

“India’s rising middle class, increasing disposable income, and preference for premium products are driving a massive demand for electronics,” said Ritika Sharma, market strategist at Axis Securities.

“Brands like LG, with strong customer trust, are best positioned to benefit from this shift.”

The company’s commitment to sustainability and innovation, including solar-powered products and recyclable packaging, has also earned praise from ESG-focused investors.

Market Reaction

Following the IPO’s closure, several related stocks in the consumer-durables sector — like Voltas, Whirlpool India, and Havells — saw upward movement. Analysts say LG’s market debut may further boost sentiment across the entire segment.

Investor Sentiment

Retail investors expressed excitement over the strong subscription. Many believe LG’s brand value and dominance make it a safer long-term investment compared to smaller IPOs.

“Even if I don’t get allotment, this IPO shows how much confidence people have in good companies,” said a retail investor from Mumbai.

With India’s stock market witnessing record retail participation, such IPOs are strengthening investor confidence in blue-chip manufacturing companies.

Final Outlook

Experts expect LG Electronics India to make a stellar stock market debut and deliver sustained long-term growth. The company’s strong fundamentals, market leadership, and expansion strategy give it a clear edge over competitors.

If the stock lists above ₹700, investors who receive allotment could see an immediate 30–40% listing gain — while long-term investors could benefit from consistent dividends and capital appreciation.