# LG Electronics India IPO Opens Today: GMP, Price Band, and Should You Subscribe?
| October 7, 2025**
The Indian IPO market is buzzing as LG Electronics India Ltd, the local arm of South Korea's consumer electronics giant, kicks off its blockbuster Rs 11,607 crore initial public offering (IPO) today. This entirely offer-for-sale (OFS) issue marks the second major South Korean listing in India after Hyundai Motors last year, tapping into the booming demand for home appliances and gadgets. With a grey market premium (GMP) signaling juicy listing gains and analysts flashing thumbs-up for long-term bets, investors are eyeing this as a premium play on India's consumption story. But is it a must-subscribe, or a wait-and-watch? Let's break it down with the essentials.
### Quick IPO Snapshot
LG Electronics India, incorporated in 1997, dominates the home appliances and consumer electronics space (excluding mobiles) with a 28-year track record. It leads in categories like washing machines (33.5% market share), refrigerators (29.9%), air conditioners (20.6%), and microwaves (51.4%). The company operates massive plants in Noida and Pune (accounting for 85% of sales) and is pumping $600 million into a new Andhra Pradesh facility to boost exports to Europe. Financials shine: FY25 revenue hit Rs 24,367 crore (up 14% YoY), with PAT at Rs 2,203 crore (up 46% YoY) and zero debt on the books.
| Parameter | Details |
|------------------------|----------------------------------------------|
| **Issue Size** | Rs 11,607 crore (OFS of 10.18 crore shares) |
| **Price Band** | Rs 1,080 – Rs 1,140 per share (FV Rs 10) |
| **Lot Size** | Minimum 13 shares (Rs 14,820 at upper band) |
| **Reservation** | QIB: 50%, NII: 15%, Retail: 35% |
| **Open/Close** | October 7 – 9, 2025 |
| **Allotment Date** | October 10, 2025 |
| **Listing Date** | October 14, 2025 (BSE & NSE) |
| **Lead Managers** | Morgan Stanley, JP Morgan, Axis Capital, BofA, Citi |
| **Registrar** | KFin Technologies |
### Grey Market Premium (GMP): Early Buzz Points to 20-28% Listing Pop
The GMP – an unofficial gauge of unlisted share trading – is hot off the press today at **Rs 228 to Rs 318** over the upper price band of Rs 1,140. That translates to an estimated listing price of Rs 1,368–1,458, implying **20-28% gains** on debut. Yesterday's close was Rs 228 (20% premium), but it spiked to Rs 318 by morning, per market observers. GMP has trended up from Rs 110-120 last weekend, reflecting frenzy ahead of the consumer durables rally.
**Caveat**: GMP is volatile and not a crystal ball – actual listing depends on subscription, market mood, and global cues. Day 1 subscription (as of 2 PM IST) is at 1.04x overall, led by non-institutional investors at 73%, signaling strong HNI interest.
### Brokerage Verdict: Overwhelming "Subscribe" for Long-Term; Listing Gains a Bonus
Fifteen-plus analysts are bullish, citing LG's market moat, attractive valuation (P/E 35.1x FY25 EPS vs. peers at 45-50x), and India's Rs 3.2 lakh crore consumer durables market (projected to Rs 6.2 lakh crore by 2029 at 14% CAGR). No fresh capital for the company (pure OFS to parent LG Electronics Inc.), but that's not denting enthusiasm – proceeds fund the promoter's liquidity, while LG India stays debt-free and growth-focused.
Here's a roundup of top calls:
| Brokerage/Firm | Rating | Key Rationale |
|-------------------------|-----------------|-------------------------------------------------------------------------------|
| **SBI Securities** | Subscribe | Market leader; 35.1x P/E attractive vs. peers; robust FY25 growth (14% revenue, 46% PAT). |
| **Centrum Broking** | Subscribe | Reasonable 35x FY25 EPS; premium brand edge in smart appliances. |
| **Choice Broking** | Subscribe | Dominant shares; B2C/B2B expansion; upside in urban/rural demand. |
| **Chola Securities** | Subscribe | Valuation at 35.12x FY25 PAT below industry avg; strong upside potential. |
| **Arihant Capital** | Subscribe (LT) | Sector tailwinds; consumption boom; long-term growth runway. |
| **Aditya Birla Money** | Subscribe | Leading market shares; premium products driving margins. |
| **Dolat Analysis** | Subscribe | Superior returns profile; cheaper than Havells/Whirlpool. |
| **ICICI Direct** | Subscribe | Zero debt; export push via new plant; resilient to raw material volatility. |
Consensus: **Subscribe for long-term** if you back India's appliance boom (rising incomes, urbanization, smart home shift). For listing flips, the GMP suggests yes – but cap at 20-25% expected pop. Risks? Promoter reliance, forex/raw material swings, seasonal sales dips, and competition from upstarts like Voltas or Blue Star.
### Bottom Line: A Solid Bet on Branded Durables – Go For It?
At Rs 1,140 (upper band), the post-issue market cap hits ~Rs 77,380 crore – fair for a zero-debt leader in a high-growth sector. With GMP fireworks and analyst cheers, this IPO screams "opportunity" for diversified portfolios. Retail folks: Bid at the cutoff (Rs 1,140) for max allotment chances. HNIs/QIBs: Anchor bids are already in (Rs 3,482 crore yesterday). Monitor Day 1 close subscription – anything over 2x screams oversubscription.
**Our Take**: Subscribe. LG's not just a brand; it's a consumption proxy with export ambitions. But diversify – don't bet the farm. For real-time subscription status, check NSE/BSE or apps like Moneycontrol.
*What’s your play – long-haul hold or quick flip? Drop thoughts below. Follow Grok Insights for live IPO updates! Disclaimer: Not financial advice; consult your advisor. Data from public sources as of October 7, 2025.*
