Highlights: LG Electronics becomes first ever IPO to cross 4 lakh subscription

The IPO received overwhelming response, with the issue subscribed 53.97 times overall, driven largely by strong demand from Qualified Institutional Buyers (QIBs).

Subscription Details:

Employee Reserve: 7.33 times

Retail Individual Investors (RIIs): 3.46 times

Non-Institutional Investors (NIIs): 22.41 times

Qualified Institutional Buyers (QIBs): 166.51 times

Issue Open Date: 07 Oct 2025

Issue close Date: 09 Oct 2025

Allotment Date: 10 Oct 2025

Refund Date: 13 Oct 2025

Demat Account Credit Date: 13 Oct 2025

Listing Date: 14 Oct 2025

LG Electronics becomes first initial public offering (IPO) in the country to cross Rs 4 lakh crore-mark in total subscription value.

The LG Electronics subscription numbers have been galloping ahead. At the last count, it was subscribed 54.02 times. The retail category was subscribed 3.55x while QIB was subscribed 166.51x. The NII subscription was at 22.44x.

LG Electronics IPO subscribed 54x so far on Day 3. The total subscription amount for the issue exceeds Rs 4,39,000 crore. This makes it one of the most subscribed large issues above Rs 10,000 crore.

The company enters into agreements with its B2C trade partners, which provide them with the right to sell and market the company’s products. For the B2B business, LG Electronics India enters into stock and sale agreements or distribution agreements with its B2B trade partners. Under these contracts, the company grants non-exclusive rights to them to distribute, market, sell, and provide installation services, as applicable for its products.

The Indian Consumer Durables space is set for a period of healthy double-digit growth, led by sturdy macro tailwinds, and tax cuts (thus, reviving consumer demand). LG Electronics is in a sweet spot to capitalise on this (market leader in most categories with presence in almost all categories and across all price points). LG Electronics is growing its localisation by 1-2% every year to gradually improve its EBITDA margin.

LG Electronics is the market leader or among the top three in most of its product categories (Inverter RAC market share at 21%, washing machine share at 34%, refrigerator share at 30%, microwave 51%, panel TV 28% etc.), as per the RHP.

Also, LG Electronics enjoys an industry-leading margin despite spending significantly on R&D and ad spends due to higher premium contribution, technological backing by the parent, diversified product portfolio and growing localisation. LG Electronics has also committed to continue capex over the next 4-5 years, to its new manufacturing facility that would also become an export hub for global sales.

The LG Electronics IPO on Day 3 is seeing high demand across all categories with an overall subscription of 13.86 times so far. Retail investors have bid 2.96 times, Qualified Institutional Buyers (QIBs) 29.35 times, and Non-Institutional Investors (NIIs) 18.73 times as of now.

“Despite these factors, the company’s market leadership, operational scale, and profitability make it suitable for long-term investors, warranting a “SUBSCRIBE for Long-Term Investment” recommendation,” said Canara Bank Securities’ Canmoney in its IPO note.

The LG Electronics IPO received an overall subscription of 11.02 times so far (Day 3). Breaking it down, the retail category is subscribed 2.87 times, Qualified Institutional Buyers (QIBs) have subscribed 20.25 times, while Non-Institutional Investors (NIIs) have taken 17.81 times the shares on offer so far.

“The IPO is entirely an OFS (Rs 11,607 cr) issue. At the upper price-band, the issue is valued at 35.1x P/E. The company is a market leader with leading market share across product categories. Leveraging it’s technological innovations, decades of operations which enable better understanding of consumer behaviour & navigating change of preferences along with band loyalty & value are all the factors that will command valuations. Compared to peers, we see the issue fairly valued, we recommend “SUBSCRIBE” to the issue,” said Aditya Birla Money in its IPO note.

The issue has been subscribed 6.30 times overall so far on Day 3. The retail portion received bids 2.75 times, while the Qualified Institutional Buyers (QIBs) segment was subscribed 5.17 times. The Non-Institutional Investors (NII) category subscribed 16.09 times so far.

The company’s operations are supported by an extensive service and logistics network, including 25 warehouses, around 950 service centres, nearly 12,590 service engineers, and more than 36,000 retail touchpoints across India. This infrastructure supports both sales and after-sales service for its products.

In the grey market, the LG Electronics India IPO GMP has ranged between Rs 274 to Rs 322 per share, translating to a premium of about 24–28% over the upper price band.

However, it is important to note that GMP is not the official listing price and changes as per market conditions.

The LG Electronics IPO on the final day of bidding, so far received an overall subscription of 4.86 times. The retail portion has received 2.49 times subscription, while the Qualified Institutional Buyers (QIB) segment is subscribed 2.73 times. The Non-Institutional Investors (NII) category subscribed at 13.23 times. With bidding still underway, market watchers are closely tracking how the final subscription numbers will shape up by the end of the day.

The entire IPO is a share sale by the promoter LG Electronics Inc., and all proceeds from the offer will go to the promoter. Since the issue does not include a fresh component, no funds will flow to the Indian subsidiary as part of this public issue.

A portion of the IPO is reserved for the company’s employees. Under this category, eligible employees are offered a discount of Rs 108 per share, allowing them to subscribe at a lower effective price compared to the general public offer.

The bidding window remains open from October 7 to October 9. The basis of allotment will be finalized on October 10, while refunds and credit of shares to investors’ Demat accounts will take place on October 13. The company’s shares are scheduled to be listed on both BSE and NSE on October 14.

“On the valuation front, based on annualized FY26 earnings, the company is seeking a P/E of 37.6 times, and a post-issue market capitalization of approximately Rs 7,73,801 million, making the issue appears to be reasonably priced. Looking at strong legacy brand recognition with market leadership across multiple consumer durables products along with inhouse production capacity among the peers in India making it giant in industry. Hence, we assign “Subscribe” rating for the issue,” said Anand Rathi Research in its IPO note.

The company’s manufacturing operations are based in Noida, Pune, and Andhra Pradesh. It sources about 54% of its components domestically, aligning with the government’s “Make in India” initiative, which encourages local manufacturing and supply chain development.

Established in 1997, LG Electronics India operates across multiple consumer electronics and home appliance categories. The company caters to both business-to-consumer (B2C) and business-to-business (B2B) segments and has built an extensive distribution and service presence across the country. Its product range includes televisions, air conditioners, refrigerators, and washing machines.

With strong operational metrics, an expanding product portfolio, and strategic initiatives aimed at both B2C and B2B segments, LGEIL is well-positioned to sustain growth, strengthen profitability, and create long-term growth in India’s dynamic home appliances and consumer electronics market. At the upper price band of Rs 247, the company is valued at a P/E multiple of 35.1x FY25 earnings. We, thus, recommend a “SUBSCRIBE” rating for this issue,” said BP Wealth in its IPO note.

The price band has been fixed between Rs 1,080 and Rs 1,140 per share. Retail investors can apply for a minimum of one lot, which consists of 13 shares. The minimum investment required at the upper end of the price range is Rs 14,820.

The IPO of LG Electronics India is structured as an offer for sale (OFS), meaning no fresh funds will be raised for the company’s operations. Instead, the proceeds will go to the promoter, LG Electronics Inc., allowing it to partially divest its stake and unlock value from its investment in the Indian subsidiary.

In FY25, LG Electronics India reported a 14.1% rise in revenue to Rs 24,367 crore. The company posted an EBITDA of Rs 3,110 crore and a net profit of Rs 2,203 crore, translating to margins of around 12.8% and 9%, respectively.

LG Electronics India benefits from the technological expertise and global brand value of its parent company, LG Electronics Inc., South Korea. The Indian subsidiary pays royalties for the use of the brand and technology but gains access to advanced innovations and product designs. The company operates through multiple sales channels, including direct sales, e-commerce platforms, and a vast network of distributors and dealers across the country.

As of the second day, the issue was subscribed 3.33 times overall. The Qualified Institutional Buyers (QIBs) segment was subscribed 2.59 times, the Non-Institutional Investor (NII) category 7.61 times, the Retail portion 1.91 times, and the Employee segment 4.13 times.

LG Electronics India benefits from the technological expertise and global brand value of its parent company, LG Electronics Inc., South Korea. The Indian subsidiary pays royalties for the use of the brand and technology but gains access to advanced innovations and product designs. The company operates through multiple sales channels, including direct sales, e-commerce platforms, and a vast network of distributors and dealers across the country.

The company derives its income from multiple business segments. Around 40% of its revenue comes from consumer electronics, 35% from home appliances, and 25% from the mobile communication segment.