LG Electronics India's IPO Oversubscribed 1.2 Times on Final Day
LG Electronics India's Initial Public Offering (IPO) has garnered significant interest, with the final day of bidding seeing a 1.2 times subscription. The IPO, which opened on October 7, 2025, aims to raise Rs 77,400 crore by selling a 15% stake in the company.
The IPO, an offer-for-sale by the South Korean parent, saw strong demand on the first day, with a 1.04 times subscription. Non-institutional investors showed keen interest, subscribing 1.90 times, while retail investors subscribed 75% of their quota. The final day of bidding saw a 1.2 times subscription, indicating robust investor confidence.
LG Electronics India has raised Rs 3,420 crore from anchor investors, ahead of the IPO's closing. The company's shares are trading at a 24% premium in the unofficial grey market, reflecting investor optimism. The IPO has a price band of Rs 1,080 to Rs 1,140 per share, valuing the company at about Rs 77,400 crore at the upper band.
The company's financial performance has been impressive, with sales growing from Rs 19,865 crore in FY23 to Rs 24,367 crore in FY25, and profit after tax increasing from Rs 1,348 crore to Rs 2,203 crore over the same period. Despite this, the company is trading at a discount to its industry peers, with a P/E of 38x and EV/Sales of 3x.
LG Electronics India's IPO has been well-received by investors, with strong subscriptions and a premium in the grey market. The company's robust financial performance and growth prospects have likely contributed to this positive response. The IPO proceeds will go towards the parent company's divestment, with no specific details yet on the participating banks or institutions.
