LG Electronics India IPO Day 2: Fully Subscribed on Debut — Should You Apply or Skip?

The ₹11,607-crore initial public offering has continued to attract massive investor interest into Day 2 after it was fully subscribed on Day One. Such strong response reflects positive investor sentiment, good fundamentals, and a robust grey market premium (GMP) of about 24–26%, indicating the high level of expectations from the investors toward healthy listing gains.

📊 LG Electronics India IPO Subscription Status (as of October 8, 11 AM)

The IPO has been subscribed 1.51 times so far, according to NSE data.

Qualified Institutional Buyers (QIBs): 0.49x

Non-Institutional Investors (NIIs): 3.65x

Retail Investors (RIIs): 1.16x

Employees: 2.59x

Total Subscription: 1.51x

The issue has received bids for over 10.75 crore shares against the offer size of 7.13 crore shares, with NIIs leading the charge, subscribing nearly four times their quota.

💹 Grey Market Premium (GMP) Trends

As per data from Investorgain and IPO Watch, LG Electronics India’s unlisted shares are trading at a 26% premium over the IPO price — slightly down from the earlier 28%. The strong GMP suggests a positive listing outlook, though analysts advise investors to evaluate long-term fundamentals before applying.

📈 Expert Views: “Must Subscribe” for Long-Term Investors

Brokerage firm Elara Capital has recommended a ‘Subscribe’ rating on the IPO with a long-term investment horizon.

According to the brokerage, the Indian consumer durables market is poised for double-digit growth, driven by tax cuts, rising disposable incomes, and strong macroeconomic indicators. LG Electronics, being a market leader across multiple product categories and price segments, is well-positioned to capitalize on this trend.

“The IPO is attractively priced at 35x FY25 earnings per share, offering a 50% discount compared to peers,” said Elara Capital. “LG Electronics’ asset-light model, industry-leading RoE of 45% and RoCE of 46%, and consistent 13% annual growth make it a compelling long-term bet.”

The firm, however, flagged key risks such as a ₹3,000 crore contingent tax liability, potential demand slowdowns, and rising competition.

🏭 Company Overview

Revenue (FY24): ₹26,782 crore

Net Profit (FY24): ₹1,710 crore

CAGR (Past 3 Years): ~10%

Operating Margins: 9–10%

Return on Equity (RoE): 22.6%

LG Electronics India operates an asset-light business model with two major plants in Noida and Pune, supported by an extensive nationwide distribution and service network.

🌍 Expansion & Growth Plans

It has been announced by the company that a $600 million investment will be made in the establishment of a new manufacturing facility at Sri City, Andhra Pradesh, for the purpose of enhancing domestic production and exports. This move is in line with LG's strategy to localize further and reduce import dependency.

As of now, roughly 46% of raw materials are imported, thus exposing the company to currency fluctuations and risks of disruptions in global supply chains.

⚠️ Key Concerns

While the fundamentals remain strong, analysts highlight certain challenges:

Tax dispute: Ongoing litigation worth ₹4,717 crore with Indian tax authorities.

Royalty payments: 2.4% of revenue paid to the South Korean parent company.

High import dependency: Nearly half of components sourced internationally.

Competitive market: Pressure from peers like Samsung, Whirlpool, and Voltas.

🧾 IPO Timeline

Issue Size: ₹11,607 crore

Allotment Date: October 10, 2025

Expected Listing Date: October 14, 2025

🧐 Verdict: Apply or Skip?

With a good brand image, steady financial performance, attractive price, and a positive market sentiment, analysts generally recommend taking IPO shares of LG Electronics India, especially from a long-term perspective.

From the short-term perspective, one must watch the trends of the GMP and updates on tax litigations before making a final call.