LG Electronics makes strong debut, shares list at 50% premium over IPO price

LG Electronics India made a solid debut on Dalal Street on Tuesday, with the shares of the dominant consumer durables company listing at a 50% premium over the initial public offering (IPO) price. The listing was better than Street expectations, as the stock was commanding a grey market premium of ₹378 in the unlisted market, suggesting an estimated listing price of around ₹1,518 per share, up 33% against the issue price of ₹1,140.

Shares of LG Electronics India debuted at ₹1,710 on the NSE, up 50.01% against the IPO price of ₹1,140. On the BSE, the LG stock opened at ₹1,715, up 50.44% from the issue price, with a market capitalisation of ₹1.16 lakh crore.

With this, LG surpassed Havells India’s market capitalisation of around ₹92,000 crore to become the largest consumer appliances company by market value.

The strong listing mirrors investors’ enthusiasm during the IPO, which received an overwhelming response with an 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 post-listing.

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, valuing the company at over ₹77,000 crore.

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 market shares of 63%, 37%, and 43%, respectively, Emkay Global said in a report.

Over FY22–25, LG Electronics India reported revenue, EBITDA, and PAT CAGRs 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.