LG Electronics India is set for a notable debut on the stock exchanges tomorrow, with analysts and grey market indicators predicting substantial initial gains of 30–33% over the issue price of ₹1,140 per share.
Market analysts anticipate the stock will list between ₹1,480 and ₹1,516, reflecting strong investor interest and sound fundamentals. The ₹11,607 crore IPO of LG Electronics India saw a remarkable subscription of 54.02 times on its final day, making it the second-largest IPO in the history of India.
The IPO, which was priced between ₹1,080 and ₹1,140 per share with a lot size of 13 shares, was composed entirely of an Offer for Sale (OFS), with the proceeds directed to LG Electronics’ parent company in South Korea. The company raised approximately ₹3,475 crore from anchor investors, including several global institutional funds.
Abhinav Tiwari, Research Analyst at Bonanza, noted that LG Electronics’ grey market premium (GMP) of 30–33% signifies a strong listing potential. He stated, “At an anticipated listing price of around ₹1,516, the stock would trade at nearly 47 times FY25 earnings, compared to 35 times at the IPO price. Despite the premium, the valuation remains justified due to LG’s consistent growth, profitability, and a debt-free balance sheet.”
Financially, LG Electronics has posted impressive results, with a net profit increase of 46% for FY25, totaling ₹2,203 crore on revenues of ₹24,367 crore, while achieving a robust return on equity (ROE) of 37% and return on capital employed (ROCE) exceeding 40%. The firm’s balance sheet is free of debt, offering it significant financial flexibility and placing it ahead of competitors in the consumer electronics industry.
Brokerage firms have maintained a “subscribe for listing gains” recommendation on the IPO, highlighting LG’s strong brand recognition, extensive distribution channels, and premium product positioning. In the broader market, Indian electronic equipment companies typically trade at price-to-earnings (PE) ratios of 40–45 times, with market leaders like Havells commanding multiples of 60–70 times.
Tiwari also pointed out that even after an expected 33% listing gain, LG Electronics could experience a further valuation re-rating, possibly reaching 50–55 times earnings over the next 12 to 18 months. This could indicate an additional upside of 15–20% from anticipated listing levels.
Attention is now focused on the forthcoming listing, with investors eager for one of the year’s most successful large-cap debuts.
Published on October 13, 2025.
