LG Electronics IPO subscribed 3.3 times on Day 2 with ₹27,000 cr in bids

The ₹11,607-crore IPO drew ₹27,000 crore worth of bids and over 3.4 million applications, with strong participation from institutional and high-net-worth investors

The initial public offering (IPO) of LG Electronics India was subscribed 3.3 times on Wednesday, a day before closing. The issue has attracted bids worth about ₹27,000 crore and received over 3.4 million applications, reflecting robust investor demand.

 

Among investor categories, the institutional segment was subscribed 2.6 times, high-net-worth individuals (HNI) 7.6 times, and the retail portion almost twice.

 

LG Electronics has set a price band of ₹1,080–1,140 per share for the IPO.

 

At the upper end, the issue size works out to ₹11,607 crore, valuing the Indian arm of the South Korean electronics major at roughly ₹77,400 crore.

 

The IPO is entirely an offer for sale (OFS) by the parent company, which is divesting 15 per cent of its stake.

 

Brokerages term issue attractively priced

 

Brokerages view the issue as attractively priced relative to peers.

 

“At the upper end of ₹1,140, the company is reasonably valued at a price-to-earnings (P/E) ratio of about 35 times FY25 earnings per share (EPS), compared with peers trading at significantly higher multiples. We assign a subscribe rating to the issue,” Centrum Broking said in a note.

 

Strong position in Indian consumer electronics market

 

In India, LG competes with Samsung, Voltas, Havells, Godrej, Blue Star, Haier, Whirlpool, Philips, and Sony. It is the second-largest appliance and electronics maker in the country after Samsung.

 

For FY25, the company reported a net profit of ₹2,203 crore on revenue of ₹24,631 crore.