The ₹11,607 crore IPO of LG Electronics India opens for subscription on Tuesday, October 7. This will be the third-largest Indian IPO of 2025, following Tata Capital’s currently open ₹15,500 crore issue, and HDB Financial’s ₹12,500 crore IPO from earlier this year.Price band for the IPO has been fixed between ₹1,080 to ₹1,140 per share. Retail investors can bid for one lot of 13 shares, which will entail a minimum investment of ₹14,820, at the upper end of the price band.The issue is a 100% Offer For Sale (OFS), which means the Indian entity will not be receiving any proceeds from the issue, where the South Korean parent, LG Electronics Inc. will be offloading stake.
The three-day IPO will close for subscription on Thursday, October 9.Ahead of the issue opening, LG Electronics India raised ₹3,474 crore from a clutch of anchor investors, which included the Government of Singapore, Government Pension Fund Global, and the Abu Dhabi Investment Authority, along with 26 of India’s domestic mutual funds, who applied through their various schemes.So, should you be subscribing to this large IPO? Here’s what experts had to say:
SBI Securities – SUBSCRIBE
SBI Securities has a “subscribe” rating to the issue, stating that LG Electronics India has one of the largest in-house production capabilities among peers in India.At 35.1 times price-to-earnings based on its post issue capital, LG Electronics outshines its peers on most valuation parameters, along with a superior return profile.
Elara Capital – SUBSCRIBE FOR LONG-TERM
Elara Capital believes that India’s consumer durables space is set for a period of healthy double-digit growth led by macro tailwinds and tax cuts, thereby reviving consumer demand and therefore, LG Electronics India is in a sweet spot to capitalize on the same.LG Electronics India also has an asset-light business model with industry-leading return ratios in financial year 2025, according to Elara, who also believes that the IPO is attractively priced.At 35 times financial year 2025 Earnings Per Share (EPS), the price is a 50% discount to its peers. Contingent liability, tax disputes are some key risks.
ANAND RATHI – SUBSCRIBE
Anand Rathi believes that the issue is “reasonably priced” looking at the strong brand legacy recognition and market leadership across multiple consumer durable products, along with a large in-house production capacity.Ahead of the IPO opening, LG Electronics India shares in the unlisted market traded at a Grey Market Premium (GMP) of ₹250 per share. However, these rates are only speculative and the original listing price could differ from the GMP.
