LG Electronics IPO day 1: GMP, subscription status to review. Good or bad bet for investors?

By Admin

07 Oct, 2025

Introduction
LG Electronics India Limited has officially opened its Initial Public Offering (IPO) for subscription today, marking another significant milestone for South Korean companies entering the Indian market. Following the Hyundai India IPO, this is the second South Korean company to offer its shares through India’s primary market. The public issue will remain open until October 9, 2025, with a price band set between ₹1,080 and ₹1,140 per equity share. The company aims to raise ₹11,607.01 crore, entirely through an Offer for Sale (OFS), and the shares will be listed on both BSE and NSE.

LG Electronics IPO GMP Today
According to market observers, the LG Electronics IPO Grey Market Premium (GMP) is witnessing strong traction. The company’s shares are currently quoting at a premium of ₹318 in the grey market   a sharp increase of ₹68 from Monday’s premium of ₹250.
Analysts attribute this upward movement to the trend reversal in the Indian stock market, reflecting improved investor sentiment and growing demand for the issue in the unlisted market.

Expert Recommendations and Reviews
The LG Electronics IPO has garnered widespread positive reviews from leading analysts and brokerage houses.

• Anshul Jain, Head of Research at Lakshmishree Investment, has assigned a ‘Subscribe’ rating, citing LG’s:
  
  

• Industry Leadership: Holding the No. 1 market share across multiple appliance categories.
  
  

• Robust Financials: A revenue of ₹21,352 crore in FY24, with high profitability and zero debt.
  
  

• Sustainable Growth Potential: Positioned well for long-term growth in India’s consumption-driven economy.
  
  

• Jain added that investors looking for exposure to a financially sound and market-dominant company should subscribe for a medium-to-long-term horizon.
  
  

• BP Equities also gave a ‘Subscribe’ recommendation, highlighting LG’s strong operational performance, expanding product portfolio, and strategic focus on both B2C and B2B segments.
  At the upper price band of ₹1,140, the IPO is valued at a P/E multiple of 35.1x FY25 earnings, which analysts consider fair for its market dominance and profitability profile.
  
  

Other reputed institutions such as Adroit Financial Services, Aditya Birla Money, Canara Bank Securities, Centrum Wealth Management, Choice Broking, Dolat Analysis and Research, GEPL Capital, ICICI Direct, SBI Capital Securities, SMIFS, and Ventura Securities have all echoed the same sentiment, assigning a ‘Subscribe’ rating.

LG Electronics IPO Details

• Issue Size: ₹11,607.01 crore (entirely OFS)
  
  

• Price Band: ₹1,080 – ₹1,140 per share
  
  

• Lot Size: 13 shares per lot
  
  

• Allotment Date: 10 October 2025
  
  

• Listing Date: 14 October 2025
  
  

• Registrar: KFin Technologies Ltd
  
  

• Book Running Lead Managers: Morgan Stanley India, J.P. Morgan India, Axis Capital, BofA Securities, and Citigroup Global Markets India
  
  

As of March 31, 2025, the company reported:

• PAT Margin: 8.95%
  
  

• EBITDA Margin: 12.75%
  
  

• Price-to-Book Value: Slightly above 13
  
  

• Market Capitalisation: ₹77,380.05 crore
  
  

LG Electronics has shown consistent growth in both revenue and profit over the past three fiscal years, reinforcing its strength in India’s home appliances and consumer electronics market.

Should You Invest?
With a strong grey market premium, robust fundamentals, zero debt, and dominant market positioning, experts largely view the LG Electronics IPO as a good bet for investors seeking long-term value.
However, potential investors should still assess their risk tolerance and investment horizon, and consult with certified financial advisors before making final decisions.

Disclaimer:
The views and recommendations mentioned above are those of individual analysts and broking firms. Investors are advised to verify details and seek professional guidance before investing in the LG Electronics IPO.