LG Electronics India IPO oversubscribed 54x for ₹11,607 crore issue

South Korean consumer electronics and home appliances major has already proved to be hit on the Street with investors bidding over 54 times for the 7.13 crore equity shares on offer in the IPO which closed today. The entire issue comprises offer for sale component from the South Korean parent, LG Electronics Inc, which will retain 57.69 crore shares (85% holding) in the Indian arm.

Prior to the IPO, the company raised ₹3,474 crore from multiple anchor investors by placing 3.04 crore equity shares at the upper end of the IPO price band of ₹1,140 per share.

At the higher end of the band, the market cap of South Korean consumer electronics major is pegged at over ₹77,000 crore. At the upper price band, the issue is valued at P/E of 37.69x on earnings per share of ₹30.25.

If the stock lists at 21% premium to the offer price, it could pip the current top consumer appliance major, Havells India’s around ₹94,000 crore at Rs 1,486, to emerge as the Numero Uno appliances company in the market cap stakes. The stock is currently trading at a premium of ₹300 (26%) in the grey market, as per IPOwatch.in.

The QIB portion saw the maximum oversubscription at 166 times against 2.03 crore shares on offer, followed by non-institutional investors at 22 times for 1.52 crore share offered. Retail investors bid 3.54 times against 3.5 crore shares on offer, whereas employees bids stood at over7 times against mere 2.10 lakh shares on offer.

The consumer electronics major has shown strong performance in FY25, with sales up 14% year-on-year to Rs 24,631 crore, with profit after tax outpacing at 46% to ₹2,203 crore, on the back of strong operational efficiency. The company has shown an operating margin of 12.8% and strong profit margin of 9%. Given its debt free status, the ROCE of 43% and ROE of 37%, underscore its solid financial strength.

The offering is the third-largest IPO of the year, after Tata Capital and HDB Financial Services’ ₹12,500-crore issue in June. It will also mark the second South Korean company to list in India, following Hyundai Motors India, which went public in October 2024 with the country’s biggest-ever IPO, raising ₹27,870 crore.

According to the IPO prospectus, India’s appliances and electronics market compounded nearly 7% over CY19-CY24 and is expected to surge 11% annually through CY29. Higher disposable incomes, rapid urbanisation, and deeper penetration of appliances and electronics in both urban and rural markets were cited as the factors for growth in the prospectus.

The total addressable market for the sector stood at ₹3.24 lakh crore ($38.2 billion) in CY24, up 12% annually since CY19. By the end of June 2025, the market expanded to ₹3.50 lakh crore ($41.2 billion) and is projected to almost double to ₹6.19 lakh crore ($72.8 billion) by CY29, reflecting a five-year CAGR of about 14%.