The year’s largest IPO, that of LG Electronics has opened for subscription today on October 7, 2025. The offering has quickly generated substantial market attention, thanks to its strong brand equity, solid anchor book response, and uptrend signals from the grey market. Let’s look at a comprehensive analysis of Day 1, including GMP trends, base price, and expert recommendations on whether to apply.
IPO Structure and Base Price
LG Electronics India’s IPO is a pure offer-for-sale (OFS) worth ₹11,607 crore, with the parent company offloading about 15% of its stake. The price band has been set at ₹1,080 to ₹1,140 per share, valuing the company at around ₹77,400 crore at the upper price cap. The minimum lot size for retail investors is 13 shares, which translates to a cost of approximately ₹14,820 per lot. Application for the IPO can be made until October 9, and the listing is expected on October 14, 2025.
LG IPO: Day 1 Grey Market Premium (GMP)
The grey market has responded with strong enthusiasm. As of Day 1, LG Electronics India’s GMP stands around ₹250–₹322 per share, displaying a 24%–28% premium over the upper price band. If these trends hold, the estimated listing price could touch ₹1,418–₹1,462, signalling healthy potential listing gains for investors.
Subscription & Market Sentiment
Prior to the public offer, the IPO attracted anchor bids worth ₹3,475 crore, involving marquee global investors such as Goldman Sachs, BlackRock, Fidelity, and Abu Dhabi Investment Authority. The institutional response indicates the strong faith in LG Electronics India’s market prospects. The IPO has also generated significant buzz among retail and HNI investors, suggesting high overall subscription levels on Day 1.
Expert Advice: Should You Apply?
Leading brokerages have recommended ‘Subscribe’ ratings to the IPO, citing several positive factors:
- Attractive valuation at a P/E of 35x FY25 EPS, lower than peers, with a strong listing gain potential.
- LG’s dominant position in the Indian consumer electronics and appliances sector, underpinned by global brand prestige and robust distribution.
- Consistent revenue growth, healthy balance sheet, and cash flows offer strong comfort.
However, as the IPO is a pure OFS, no fresh capital will flow into LG India, and all proceeds will go to the promoter, a point to be factored in for long-term investors.
Nutshell
The LG Electronics India IPO offers attractive listing prospects, thanks to a solid grey market premium and favourable institutional backing. Expert consensus favours applying, especially for investors seeking listing gains or long-term exposure to a market leader in consumer durables. Still, participants should weigh the fact that the IPO is purely an offer for sale, with no proceeds allocated for business expansion.
