LG Electronics IPO Review 2025: GMP, Subscription, Verdict
The LG Electronics IPO is finally here, and interest is sky-high. In this review, we’ll unpack the grey market premium (GMP), subscription status, expert opinions, and whether this bold debut is a winning bet or a risky play.
LG Electronics IPO in Brief
LG Electronics India Ltd (LGEIL) is launching its public debut via a ₹11,607.01 crore Offer for Sale (OFS). The price band is set between ₹1,080 and ₹1,140 per share, with a lot size of 13 shares. The issue opens on October 7, 2025, and concludes on October 9, 2025. Allotment is expected by October 10, and listing on October 14.
This IPO marks one of the rare South Korean giants aiming to tap India’s capital markets — following in Hyundai’s footsteps. For many retail and institutional investors, LG Electronics IPO is shaping up to be a marquee offering in 2025.
Grey Market Premium (GMP) & Sentiment
As of today, the LG Electronics IPO commands a GMP of ₹318, up sharply from ₹250. This steep rise in premium suggests heightened positivity — investors believe listing gains could be rewarding.
GMP is a strong barometer of sentiment in the unlisted market. A surge like this often hints that eager buyers expect a robust debut and are willing to pay extra in grey markets to secure share allocation.
Subscription Status on Day 1
By 3:30 PM on day one, the subscription data tell an interesting story:
- Overall Subscription: 0.78×
- Retail Portion: 0.72×
- NII (Non-Institutional): 1.69×
- QIB (Institutional): 0.15×
While QIBs remain cautious for now, retail and NII segments have shown healthy interest early on. Institutional flows often arrive closer to the final bidding day.
Financials & Business Strength
LG Electronics India posted ₹21,352 crore in revenue for FY24. Its margins are attractive: EBITDA at ~12.75% and PAT at ~8.95%. Crucially, the company operates debt-free, bolstering investor confidence in its financial resilience.
On the market front, LG leads in many home appliance categories — air conditioners, washing machines, and more — thanks to strong branding, distribution, and consumer trust.
Analyst Verdicts & Valuation
Most brokerages have assigned a “Subscribe” rating to the LG Electronics IPO.
- Lakshmishree Investment praises its market dominance and solid financials.
- BP Equities values it at 35.1× FY25 earnings, which is reasonable for a brand of LG’s standing.
- Others like ICICI Direct, SBI Capital, Aditya Birla Money, and Centrum Wealth echo similar positive outlooks.
Comparisons to peers like Whirlpool and Voltas show LG’s valuations are broadly in line, if not more compelling given its stronger margins and brand equity.
Risks Worth Watching
Despite the optimistic tone, some caution is warranted:
- Global supply chain disruptions may strain production.
- Intense competition from domestic and Chinese brands.
- Currency volatility could raise input costs.
- Discretionary spending slowdowns in the face of inflation may hit demand.
Such factors inject a hint of uncertainty into this otherwise promising story.
Long-Term Potential
India’s home appliance sector is poised for sustained growth in the coming years, driven by rising purchasing power, urban expansion, and smarter consumer trends. LG aims to leverage this via increased presence in Tier-II and Tier-III cities, energy-efficient product innovation, and strategic expansion in both consumer (B2C) and industrial (B2B) lines.
Verdict: Bold Bet or Cautious Play?
Given its robust fundamentals, commanding brand, and debt-free balance sheet, the LG Electronics IPO is an appealing long-term play. For short-term listing gains, outcomes will hinge on market sentiment. But for investors eyeing steady, sustainable growth, this debut is shaping up to be an optimistic, power-packed bet rather than a gamble.
Conclusion
The LG Electronics IPO blends excitement, opportunity, and realistic caution. With its strong financials, market leadership, and favorable analyst backing, it presents a compelling choice for investors who believe in India’s consumption story. While risks exist, the long-term upside looks promising — making this IPO one of 2025’s most anticipated offers.
FAQs
1. What is the current GMP of the LG Electronics IPO?
The grey market premium for the LG Electronics IPO stands at ₹318.
2. Is this IPO good for long-term investors?
Yes — with its strong brand, debt-free structure, and growth potential, it’s viewed as a solid long-term investment.
3. What is the minimum number of shares an investor can apply for in this IPO?1 lot consists of 13 shares.
4. When will the allotment and listing occur?
Allotment is expected on October 10, 2025, and listing on October 14, 2025.
5. What are the main risks here?
Supply chain constraints, fierce competition, currency fluctuations, and possible consumer slowdown are notable risks.
ZERODHA 1) : https://zerodha.com/open-account?c=EJ4366
Angelone 2) : https://tinyurl.com/2gloc3g6 or
Upstox3): https://link.upstox.com/9w4tNo1rK8au7VK47
