LG Electronics India's ₹11,607 crore IPO opened on October 7 and was subscribed 62% on the first day. In the grey market, shares are trading at a premium of ₹318, indicating a potential listing gain of approximately 28%. Experts have given it a ‘Subscribe’ rating based on its b brand and valuation.
LG Electronics India IPO: The Indian unit of South Korean giant LG Electronics' ₹11,607 crore IPO opened on October 7 and was subscribed 62% on the first day. Retail and non-institutional investors showed b interest. In the grey market, shares are trading at ₹1,458, which is ₹318 above the issue price of ₹1,140. According to experts, this issue is considered attractive for investment due to its b brand value, innovation, and extensive distribution network.
Subscription Status on Day 1
LG Electronics India's IPO opened on October 7 and received 0.62 times, or 62 percent, subscription by afternoon on the first day. Retail investors and Non-Institutional Investors (NIIs) actively participated in this issue. The retail investors' quota saw a 0.59 times subscription, the NII segment recorded 1.39 times, and the Qualified Institutional Buyers (QIBs) portion received 0.07 times subscription.
The portion reserved for employees also received an excellent response. Applications in this category reached up to 1.43 times. This clearly indicates that both the company's employees and small investors are showing confidence in this issue.
This IPO will remain open for investment until October 9. Following this, the allotment of shares will take place on October 10. The company's listing is expected on October 14 on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
Strong Demand in the Grey Market
Shares of LG Electronics India have shown excellent demand in the grey market since the beginning. According to market observers, the company's shares are currently trading at ₹1,458 per share, while the upper price band for the IPO was set at ₹1,140. This means there is currently a premium of approximately ₹318 in the grey market.
This implies that if the current trend continues, investors could see a profit of approximately 27 to 28 percent at the time of listing. According to analysts, investor interest in the company's shares is continuously increasing due to its b brand value and market leadership.
Company's Business and Market Position
LG Electronics India is one of the leading companies in the country's home appliance and consumer electronics sector. The company has long been a market leader in the television, refrigerator, washing machine, air conditioner, and mobile segments. Its b foothold in India, robust brand value, extensive distribution network, and focus on innovation have kept it ahead of the competition.
The company has over 60,000 retail outlets across the country and maintains its presence in more than 400 cities. Additionally, the company operates two large manufacturing units in India, which cater to both domestic demand and export requirements.
What Analysts Say
Brokerage house Anand Rathi has given LG Electronics India's IPO a ‘Subscribe’ rating. The firm believes that the company's valuation at the current level is fair. According to the firm, based on estimated earnings for FY26, the company is seeking a valuation at approximately 37.6 times its Price-to-Earnings (P/E) ratio.
The report states that the company's market capitalization could reach approximately ₹7,73,801 million post-issue. Analysts say that the company's b financial position, consistently growing revenue, and stable market presence provide it with the potential for long-term growth.
IPO Size and Price Band
This ₹11,607 crore public issue of LG Electronics India is entirely an Offer For Sale (OFS). This means the company will not receive any new capital from it; instead, existing promoters will sell some of their stake. The company has set the price band for its shares at ₹980 to ₹1,140 per share.
In this issue, investors can apply for a minimum of 13 shares in one lot. This means the minimum investment amount will be ₹14,820. Applications can be made for a maximum of 14 lots.
