LG Electronics Inc. has reported that its $1.3 billion initial public offering (IPO) for its Indian unit was five times oversubscribed, with significant interest from institutional and affluent investors still evident just hours before the bookbuilding process concluded.
Investor subscriptions revealed that wealthy individuals subscribed to shares at a rate 13 times higher than the allocated amount as of noon in Mumbai. Additionally, qualified institutional investors showed a subscription level of 2.7 times, retail investors at 2.5 times, and employee subscriptions reached 5.3 times.
The IPO involves offering 71.3 million shares priced between 1,080 and 1,140 rupees each, aiming to establish a market valuation for LG Electronics India Ltd. as high as 774 billion rupees (approximately $8.7 billion). This valuation aligns closely with that of its South Korean parent company and could position the Indian unit as the largest publicly traded home-appliance manufacturer in the country. Shares are anticipated to commence trading on October 14.
Sanjay Chitkara, Chief Sales Officer at LG Electronics India, expressed confidence in the strong and sustainable consumption trajectory in India. He noted, “Seeing the IPO get subscribed on the very first day is not just a reflection of investor confidence — it reflects 28 years of trust that Indian consumers, partners, and employees have placed in LG.”
This IPO marks the fourth billion-dollar offering in India for 2025, contributing to the country’s ranking as the fourth-largest IPO market globally, with total proceeds exceeding $13 billion, as reported by Bloomberg. In the previous year, IPO proceeds in India hit a record nearly $21 billion.
The IPO attracted significant interest from sovereign wealth funds from Abu Dhabi, Norway, and Singapore, as well as global asset managers like BlackRock Inc. and Fidelity International Ltd., as part of an anchor share sale earlier in the week.
Chirag Muchhala of Centrum Capital noted that the offering is priced at approximately 35 times earnings for the fiscal year ended March 31, which is competitive compared to peers with notably higher valuations. He emphasized that the IPO is reasonably priced in light of LG’s market leadership, strong brand equity, global parentage, and extensive distribution and manufacturing capabilities.
LG Electronics India holds a dominant position in multiple product categories, including washing machines, refrigerators, televisions, air conditioners, and microwave ovens, based on offline market share, according to Axis Capital.
In related market activity, subscriptions for the IPO of Tata Capital Ltd., which stands at 155 billion rupees, were nearly double the number of shares offered, making it the largest IPO in India this year.
The share sale for LG was managed by Axis Bank Ltd. in collaboration with the Indian divisions of Morgan Stanley, JPMorgan Chase & Co., Bank of America Corp., and Citigroup Inc.
Published on October 9, 2025.
