LG Electronics India Makes Strong Debut with 44.98% Premium, Lists at ₹1,652.80 Against Exceptional Subscription

LG Electronics India Limited, a leading manufacturer and distributor of home appliances and consumer electronics with #1 market share across key product categories, 2 manufacturing units, 25 warehouses, and 1,006 service centres backed by the global LG Electronics brand, made a strong debut on BSE and NSE on October 14, 2025. After closing its IPO bidding between October 7-9, 2025, the company commenced trading with a 50.44% premium, opening at ₹1,715!

LG Electronics India Listing Details

• LG Electronics India Limited launched its IPO at ₹1,140 per share with a minimum investment of 13 shares costing ₹14,820. The IPO received an exceptional response with a subscription of 54.02 times - retail investors at 3.55 times, NII at 22.44 times, and QIB at 166.51 times.

First-Day Trading Performance Outlook

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• Listing Price: LG Electronics India share price opened at ₹1,715, representing a premium of 50.44% from the issue price of ₹1,140, and traded at ₹1,652.80, delivering strong gains of 44.98% for investors, reflecting positive market sentiment towards the consumer durables sector backed by the global LG brand.

Growth Drivers and Challenges

Growth Drivers:

• Market Leadership: Leading market share in the home appliances and consumer electronics industry with #1 position across key product categories, including home appliances, air solutions, and home entertainment, backed by the global LG Electronics brand (leading single-brand global player in CY 2023).
• Robust Distribution Network: Comprehensive pan-India infrastructure with 2 advanced manufacturing units (Noida and Pune), 25 warehouses (2 CDCs and 23 RDCs), 51 branch offices, 30,847 sub-dealers, 1,006 service centres supported by 13,368 engineers, and a workforce of 3,796 employees as of June 2025.

Challenges:

• Pure Offer for Sale Concerns: The Entire IPO is an offer for sale with no fresh capital being raised for the company; all ₹11,607.01 crore proceeds are going to promoter LG Electronics Inc., reducing holding from 100% to 85%, raising questions about the timing of the partial exit.
• Aggressive Valuation Metrics: Post-issue P/E of 37.69x and alarming price-to-book value of 13.04x appearing aggressively priced despite strong fundamentals and exceptional subscription, premium valuation requiring sustained growth to justify investor expectations.
• Intense Market Competition: Operating in a highly competitive consumer durables market with numerous established players, requiring continuous innovation in tailored technologies for Indian consumers and maintaining operational efficiency to defend the market leadership position.

Utilisation of IPO Proceeds

• Pure Offer for Sale: The entire IPO is an offer for sale of 10.18 crore shares worth ₹11,607.01 crore with no fresh capital being raised for the company. All proceeds go to the promoter, LG Electronics Inc., reducing its holding from 100% to 85%, representing a significant partial exit by the global parent.

Financial Performance of LG Electronics India

• Revenue: ₹24,630.63 crore for FY25, showing steady growth of 14% from ₹21,557.12 crore in FY24, reflecting strong market demand for home appliances and consumer electronics in India.
• Net Profit: ₹2,203.35 crore in FY25, representing an impressive growth of 46% from ₹1,511.07 crore in FY24, demonstrating substantial operational leverage and margin expansion benefits despite competitive market conditions.
• Financial Metrics: Exceptional ROCE of 42.91%, outstanding RoNW of 37.13%, zero debt maintaining capital-efficient operations, healthy PAT margin of 8.95%, moderate EBITDA margin of 12.76%, alarming price-to-book value of 13.04x, and an estimated market capitalisation of ₹1,12,214.65 crore.