"Should You Subscribe to LG Electronics India IPO ? A Detailed Review"
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"Should You Subscribe to LG Electronics India IPO ? A Detailed Review"

  • IPO
  • Oct 07, 2025
"Should You Subscribe to LG Electronics India IPO ? A Detailed Review"

LG Electronics India IPO Review: Strong Debut with Robust GMP and Market Leadership

The highly anticipated LG Electronics India IPO has garnered significant attention, commanding one of the strongest grey market premiums (GMP) among recent large cap offerings and drawing positive ratings from analysts and brokerages alike.

Key IPO Details

  • Issue Size: 11,607 crore (entirely Offer-for-Sale by parent LG Electronics Inc.)

  • Price Band: 1,080–1,140 per share

  • Lot Size: 13 shares per lot (minimum investment 14,820)

  • IPO Dates: Opens October 7, 2025 | Closes October 9, 2025

  • Allotment: Expected October 10, 2025

  • Listing: BSE & NSE on October 14, 2025

  • GMP: Trading at a 22–28% premium (GMP 250–?322; grey market price ~1,418–1,462 per share)

  • Promoter Stake Dilution: LG Electronics Inc. to sell ~10.18 crore shares, reducing its holding from 100% to 85%.

Company Snapshot

LG Electronics India is a market leader in consumer electronics and home appliances, with dominant shares in several key product categories:

  • Washing Machines: 34%

  • Refrigerators: 30%

  • Microwaves: 51%

  • Televisions: 28%

  • Over 35,600 sales touchpoints and 777 brand shops nationwide.

The company has a reputation for innovation, reliable products, and a formidable distribution and after-sales network built over 28 years of Indian operations.

Financials and Valuation

  • FY25 RoE: 36.9%

  • FY25 RoCE: 50.1%

  • EBITDA Margin: Improved from 9.6% (FY23) to 12.8% (FY25)

  • PAT Margin: Up from 6.8% (FY23) to 9% (FY25)

At the upper end of the price band, the post-issue P/E stands at 35–38x (FY25/TTM earnings), which is at a discount to listed Indian peers like Havells, Voltas, and Blue Star.

Expert Reviews and Recommendations

Most brokerages and analysts have assigned a “Subscribe” rating to the IPO, citing:

  • Fair valuations versus sector peers

  • Dominant market share and strong brand recall

  • Solid financial performance and operational efficiency

  • Strategic support from global parent LG Electronics Inc.

  • Opportunities in premiumization and expanding Indian market.

Source moneycontrol