New Delhi: The much awaited Initial Public Offering (IPO) of LG Electronics India one of the country’s most trusted consumer durable brands opened for subscription today October 7 2025. The company aims to raise ₹11,607 crore through this issue making it one of the largest public offerings of the year. Investors can place their bids for the IPO until October 9 2025.
Key IPO Details
- Price Band: The company has fixed the price band at ₹1,080 to ₹1,140 per share.
- Lot Size: Investors can apply for a minimum of one lot of 13 shares. This translates to a minimum investment of ₹14,820 at the upper price band.
- Issue Structure: The issue is a complete Offer for Sale (OFS) of 10.18 crore shares by its promoter the South Korean parent company LG Electronics Inc. This means the proceeds will go to the promoter not the company.
- Listing Date: The shares are expected to be listed on both the BSE and NSE on October 14 2025.
Company Business and Financials
Established in 1997 LG Electronics India is a market leader in the home appliances and consumer electronics segments. The company holds a strong market position in products like washing machines refrigerators air conditioners and microwave ovens.
The company’s financial performance has been robust. Between FY24 and FY25 its revenue grew by 14% and the profit after tax (PAT) saw an impressive jump of 46%. This reflects the company’s strong brand equity and extensive distribution network.
Grey Market Premium (GMP)
The IPO is generating significant buzz in the grey market. Today its Grey Market Premium (GMP) is trading in the range of ₹318 to ₹322. Based on the upper price band this indicates a potential listing gain of around 28% suggesting the shares could list at approximately ₹1,462. However the GMP is only an indicator and the actual listing price may vary.
What Brokerages Recommend
A majority of brokerage firms are positive about the IPO and have recommended a “Subscribe” rating.
- Choice Broking and Centrum Broking have advised subscribing to the issue citing the company’s leading market position strong brand and fair valuation.
- Anand Rathi Shares and Arihant Capital Markets recommend “Subscribe – Long Term” calling LG India a stalwart in its industry with strong brand recall and domestic manufacturing capabilities.
- ICICIdirect Research also gave a “Subscribe” rating. It noted that the issue is attractively priced given its strong brand technological know-how and superior margins due to its MNC parentage.
Analysts suggest the company’s valuation is reasonable compared to its peers. At the upper price band the P/E (Price-to-Earnings) ratio stands at 35.12 times its estimated FY25 earnings which is lower than the industry average.
Should You Invest?
LG Electronics is a well established household name with strong financials and a dominant market position. Most experts have recommended subscribing to the IPO due to its fair valuation and solid growth prospects. However investors should note that the issue is a complete OFS and market volatility always poses a risk. A careful assessment of one’s own risk appetite is advisable before making an investment decision.
