LG Electronics India IPO Soars with Massive Grey Market Buzz

LG Electronics India Ltd, a leading name in the consumer electronics sector, launched its highly anticipated initial public offering (IPO) on Tuesday, October 7, 2025, marking one of the largest IPOs in India’s consumer electronics market. The IPO, entirely an offer-for-sale (OFS) by its South Korean parent, LG Electronics Inc., aims to divest over 10 crore equity shares, representing a 15% stake in its Indian arm. With a grey market premium (GMP) of Rs 318 as of 9:31 a.m. today, the IPO signals robust investor confidence, projecting listing gains of up to 27.89%. The issue, priced between Rs 1,080 and Rs 1,140 per share, is set to raise Rs 813.07 crore, valuing the company at approximately $12.5 billion.

The IPO structure comprises 10,18,15,859 equity shares with a face value of Rs 10 each, offered through a book-built issue with no fresh issue component. Investors can bid for a minimum of 13 shares per lot, requiring an investment of Rs 14,820 at the upper price band. The share allocation reserves 2,03,21,026 shares for qualified institutional buyers (QIBs), 1,52,40,770 for non-institutional investors (NIIs), and 3,55,61,796 for retail investors. The issue is managed by prominent bankers, including Morgan Stanley India Co., JPMorgan India Pvt., Axis Capital Ltd., BofA Securities India Ltd., and Citigroup Global Markets India Pvt., with Kfin Technologies Ltd. as the registrar. The subscription window closes on October 9, with share allotment expected by October 10 and listing on the NSE and BSE slated for October 14.

The grey market premium reflects strong pre-listing demand, having surged from Rs 145 to Rs 318 in recent days, a 37% jump. At the upper price band of Rs 1,140, the estimated listing price stands at Rs 1,458 per share, offering significant returns for investors. This enthusiasm underscores LG Electronics India’s dominant position in the Indian market, where it leads in categories like washing machines, refrigerators, panel TVs, inverter air conditioners, and microwaves, as per its draft red herring prospectus. The company’s focus on home appliances and air solutions, alongside home entertainment, has solidified its reputation as a trusted brand among Indian consumers.

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Financially, LG Electronics India reported a profit of Rs 1,511 crore in fiscal 2024, alongside a generous dividend payout of Rs 2,093 crore at Rs 185 per share. In the first quarter of the current fiscal year, the company achieved revenue of Rs 6,409 crore, a profit of Rs 680 crore, and an operating income of Rs 958 crore, with a healthy operating margin of 14.94%. As of June 30, 2025, its cash balance stood at an impressive Rs 3,606 crore, highlighting its strong financial position. The company’s market capitalization post-IPO is estimated at Rs 77,380.05 crore, reinforcing its status as India’s second-largest electronics major.

The IPO’s first day saw a subscription rate of 0.10 times as of 10:27 a.m. on October 7, indicating early investor interest. With its robust financials, market leadership, and strong grey market performance, LG Electronics India’s IPO is poised to be a landmark event in India’s capital markets, offering investors a chance to tap into the growth of a consumer electronics powerhouse.

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