The LG Electronics India IPO, which opened on Tuesday, October 7, 2025, continues to attract strong investor interest as it enters its second day. The unlisted shares are trading at a 26% grey market premium (GMP) over the IPO price, slightly lower than the 28% reported earlier, indicating sustained enthusiasm among retail and institutional investors.

IPO subscription and investor response

On the first day of bidding, the maiden public issue of LG Electronics India was fully subscribed, receiving bids for approximately 7.45 crore shares against an offer size of 7.13 crore shares, according to NSE data at 4.40 pm.

  • Retail investors (RIIs): Subscribed 81% of their reserved quota.
  • Non-Institutional Investors (NIIs): Subscribed 231% of their quota.
  • Qualified Institutional Buyers (QIBs): Subscribed 49% of their allocated portion.

The IPO is an offer for sale (OFS) with LG Electronics Inc., the South Korean parent company, divesting 10.18 crore shares. The price band for the issue is fixed at ₹1,080–₹1,140 per share, and each lot comprises 13 shares. The allotment is expected on October 10, with listing likely on October 14.

Company performance and financials

LG Electronics India has reported steady performance in recent years:

  • Revenue FY24: ₹26,782 crore
  • Net profit FY24: ₹1,710 crore
  • Return on equity (RoE): 22.6%
  • Operating margins: 9–10%

The company operates two major manufacturing units in Noida and Pune and maintains an extensive sales and service network across India. LG Electronics India has announced a $600 million investment in a new manufacturing facility at Sri City, Andhra Pradesh, aimed at both domestic and export markets.

Business outlook and challenges

Despite strong fundamentals, LG Electronics India faces certain challenges:

  • High import dependency: Around 46% of raw materials are imported, making the company susceptible to currency fluctuations and supply-chain disruptions.
  • Royalty payments: The Indian subsidiary pays 2.4% of its sales to the South Korean parent.
  • Ongoing tax dispute: The company is involved in a ₹4,717 crore tax dispute with Indian authorities, which could impact finances depending on the outcome.
  • Market competition: Intense pricing pressure from both domestic and multinational brands across product categories.

Analysts have cautioned that rising input costs and foreign exchange fluctuations may impact margins, although the company continues to operate with minimal debt and strong cash flows.

Market position and investor sentiment

LG Electronics India remains one of India’s leading consumer electronics and home appliance brands, competing with Samsung, Whirlpool, Godrej, and Voltas. The IPO has generated positive sentiment due to strong fundamentals, investor confidence, and robust grey market activity.

The grey market premium of 26% indicates that investors expect a strong listing performance, reflecting both the brand’s market position and future growth potential.

Conclusion

The LG Electronics India IPO is witnessing high market enthusiasm, with robust subscription rates on Day 1 and a strong grey market premium on Day 2. While challenges like import dependency, royalties, and tax disputes remain, the company’s solid financials, expansion plans, and leadership in the consumer electronics sector make it an attractive proposition for investors.