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The much-anticipated LG Electronics India Ltd. today listed on the domestic stock exchanges with a 50% premium, marking one of the most successful IPO listings.
LG Electronics India opened at Rs. 1,715 on BSE and on the NSE at Rs. 1,710.10, a strong premium of Rs. 575 or 50% over the issue price of Rs. 1,140 per share.
The debut exceeded grey market expectations, which had previously indicated a 35-40% premium; this confirmed strong demand from the investors and their confidence in the company’s future growth.
At 10:30 a.m., the shares settled slightly lower than the opening price, trading at Rs. 1,660 on the NSE and Rs. 1,663 on the BSE, as investors booked profits.
The IPO of LG Electronics India, worth Rs. 11,607 crores, became the most subscribed public issue as it received bids of approximately Rs. 4.5 lakh crores, surpassing the previous record of Rs. 3.2 lakh crores set by Bajaj Housing Finance.
The issue was subscribed 54.02 times, fueled by strong institutional and retail participation. The QIB (Qualified Institutional Buyers) portion was oversubscribed 166.51 times, while non-institutional investors and retail investors subscribed 22.44 times and 3.54 times, respectively.
The IPO, priced in the band of Rs. 1,080-Rs. 1,140 was entirely an offer for sale (OFS) of 10.18 crore shares, meaning all proceeds will go to the South Korean parent company. The issue valued LG Electronics India at Rs. 77,400 crore at the upper price band.
Market analysts remain positive regarding the future of LG Electronics after the listing. Motilal Oswal Financial Services started its coverage with the recommendation of ‘Buy’ and the target price of Rs. 1,800.
The reason for it was the company’s dominant position in key product segments, the wide B2B and AMC revenues coming in, and high return ratios.
Swastika Investmart’s Head of Wealth, Shivani Nyati, advised investors to book partial profits after the sharp debut while retaining some holdings for long-term gains. A stop-loss at Rs. 1,400 is recommended to manage volatility.
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Analysts highlight the strong performance of LG Electronics India in FY25 with a 14% rise in revenues and a 46% increase in profits year-on-year.
The company's strategy of concentrating on localization, innovation, and sustainability positions it to capitalize on the growing Indian market for consumer electronics and appliances.
With this initial public offering, LG Electronics becomes the second South Korean company, after Hyundai Motor last year, to be listed in India.
The listing of LG Electronics has been a defining moment for India's IPO market, combining record-breaking subscription, brand trust, and impressive financial performance, setting a new benchmark for global companies entering Indian capital markets.
