LG Electronics IPO: Grey market indicates strong 33% listing upside

LG Electronics India is poised for a robust debut on D-Street, with the grey market premium (GMP) indicating a potential listing gain of more than 33%. The LG Electronics shares were commanding a premium of ₹378 in the unlisted market, suggesting an estimated listing price of around ₹1,518 per share against the issue price of ₹1,140. The stock is slated to list on the BSE and the NSE on October 14.

The strong grey market demand mirrors investors’ enthusiasm during the IPO, which received an overwhelming response with overall subscription of over 54 times for the 7.13 crore shares on offer. The issue, which closed on October 13, comprised entirely an offer for sale (OFS) by the South Korean parent, LG Electronics Inc., which will continue to hold 57.69 crore shares, representing an 85% stake in its Indian subsidiary after listing.

If the stock lists at a 33% premium to the issue price, it could surpass Havells India’s market capitalisation of around ₹92,000 crore to become the largest consumer appliances company by market value.

Ahead of the IPO, the company raised ₹3,474 crore from anchor investors by allotting 3.04 crore shares at the upper end of the price band of ₹1,140 per share. At the higher end, the market capitalisation of LG Electronics India is estimated at over ₹77,000 crore, and the issue is valued at a price-to-earnings (P/E) ratio of 37.69x, based on an earnings per share of ₹30.25.

LG Electronics India has established itself as one of the most dominant consumer durables brands in the country, holding leading positions across core categories such as refrigerators (30% FY25 market share), washing machines (34%), room air conditioners (18%), and televisions (28%). Unlike many peers that rely heavily on one or two product segments, LG’s strength is broadly diversified across the white goods spectrum.

A key differentiator is its focus on premium products, which account for 25% of its revenue compared with 15% for the industry. In high-end segments such as OLED TVs, front-load washing machines, and side-by-side refrigerators, LG commands a market share of 63%, 37%, and 43%, respectively, Emkay Global said in a report.

Over FY22–25, LG Electronics India reported revenue, EBITDA, and PAT CAGR of 13%, 23%, and 23%, respectively, with a strong return on equity (RoE) of 45% in FY25, compared with a peer average of 16%. The company also maintains a healthy net-cash position of around ₹3,300 crore as of FY25, the report noted.

LG Electronics India raised ₹11,607 crore via the IPO route, making it India’s third-largest IPO of 2025, after Tata Capital and HDB Financial Services’ ₹12,500-crore float in June. It also marked 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.

The LG Electronics IPO listing coincided with Tata Capital’s mega ₹15,512 crore public offering, which debuted at a premium of over 1%. The NBFC shares were listed at ₹330 on the BSE, up 1.23% against the issue price of ₹326, giving the company a market capitalisation of ₹1.4 lakh crore.

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