LG Electronics India’s Rs 11,607-Crore IPO: Fully Booked on Opening Day!

Hey folks, if you’re into the stock market like I am, you’ve probably heard the buzz around LG Electronics India’s big IPO launch. I remember buying my first LG fridge back in college & it lasted forever and made me a loyal fan. Now, seeing their Indian arm go public and get snapped up so fast? It’s exciting stuff. This Rs 11,607-crore IPO got fully subscribed on the 1st day, October 7, 2025. That’s a clear sign that investors are betting big on LG. Let’s break it down in simple terms, why it happened, and what it means for you if you’re thinking about jumping in.

The Basics of the IPO

Let’s look at the basics first. LG Electronics India, a subsidiary of the South Korean powerhouse LG Electronics Inc., kicked off its IPO. This isn’t a fresh issue where the company raises new money for itself, it’s purely an offer for sale (OFS) by the parent company. All the proceeds go straight to them. The price band was set between Rs 1,080 and Rs 1,140 per share, with a minimum lot of 13 shares, so you’d need at least Rs 14,820 to get in at the top end. The IPO runs until October 9, and shares are expected to list on the BSE and NSE around October 14.

Day One Subscription Details

By the end of day one, the issue was oversubscribed about 1.04 times overall, with bids pouring in for over 7.45 crore shares against the 7.13 crore on offer. Non-institutional investors (like high-net-worth folks) led the charge, subscribing 2.31 times their portion. Retail investors weren’t far behind at 0.81 times, while qualified institutional buyers (big funds and such) filled 0.49 times. It’s no surprise—right before the public opening, LG raised Rs 3,475 crore from anchor investors, including heavyweights like the Singapore Government, Fidelity, BlackRock, and Goldman Sachs. That kind of backing from global players? It builds real confidence.

Why All the Hype Around LG?

Why all the hype? LG Electronics India isn’t just any company. They’ve been in India for over 25 years and dominate the market in stuff like washing machines, refrigerators, TVs, air conditioners, and microwaves—especially in offline sales. Think about it: In a country where summers are brutal and everyone wants reliable ACs, LG’s brand trust shines. Their revenue hit Rs 21,352 crore in FY24, with solid profits and zero debt. Plus, they’re pushing into premium products and B2B areas like commercial displays and solar solutions. I feel a bit of pride here—Indian consumers love durable, innovative gadgets, and LG delivers that without the fancy jargon.

What Analysts Are Saying

Analysts are pretty pumped too. Brokerages like Elara Capital and SBI Securities are telling folks to subscribe, pointing to LG’s top market position and fair pricing compared to rivals. At the upper price, the IPO values the company at around Rs 77,380 crore, with a price-to-earnings ratio of about 35.1 times which is decent for a leader in consumer durables. Choice Research highlights growth potential in India’s booming appliance market, driven by rising incomes and urbanisation. If you’re a long-term investor, this could be a steady play. But hey, markets can be tricky & I’ve lost sleep over a few bad picks myself, so do your homework.

Grey Market Buzz and Broader Impact

Adding to the excitement, the grey market premium (GMP) is hovering around 22-27%, meaning shares could list at a nice bump over the issue price. That’s like an early win for allottees. Still, GMP isn’t guaranteed, it’s just street talk. This IPO represents about 15% of LG India’s stake, leaving the parent with plenty of control. It’s part of a bigger trend: Foreign firms listing Indian units to unlock value amid our hot stock market.

What does this mean for the business world in India? Well, it’s a vote of confidence in our economy. Consumer durables are recovering strong after the pandemic slump, with folks upgrading to smarter homes. watching LG’s success, more global brands may get into the race to tap Indian capital. For small investors like you and me, it’s a chance to own a piece of a trusted brand. But remember, IPOs can be volatile so don’t bet the farm.

Final Thoughts

All in all, this quick sell-out shows LG’s solid footing. If I were starting fresh, I’d consider it for the brand’s staying power. Sorry if the market dips make you nervous; we’ve all been there. Stay tuned for day two updates, and if you’re applying, good luck! What do you think LG will keep leading the pack? Drop a comment below.

References

1. LG Electronics IPO Live Updates – The Economic Times
2. LG Electronics India IPO: Issue fully booked on Day 01 on strong NII … – Livemint
3. LG IPO fully subscribed on day one; WeWork lags, Tata Capital steady – Business Standard
4. LG Electronics IPO fully subscribed on day 1! GMP, review … – Mint
5. LG Electronics’ $1.3 Billion India IPO Sold on First Day – Bloomberg
6. LG Electronics IPO GMP Live: Non Institutional Investors lead Day 1 … – Moneycontrol