LG Electronics India IPO: GMP stays healthy after over 3X subscription on Day 2

Mumbai (Wednesday, 8 October 2025): The initial public offering of LG Electronics India Ltd. was subscribed more than three times on the second day of bidding, with grey market premium indicating healthy demand in the unregulated market.

LG Electronics is the second South Korean company after Hyundai Motor to tap India's red-hot IPO market. (Reuters)

Investors bid for 23.74 crore shares against 7.13 crore shares on offer in the LG India IPO—that translates into a subscription of 3.3 times, according to data on the website of the National Stock Exchange of India on Wednesday. The IPO has so far raised ₹27,062.98 crore from 34,11,127 applications.

To be sure, the grey market premium is a signal, not a guarantee. It reflects what traders are willing to pay for an IPO-bound stock in the unofficial market—it doesn’t guarantee listing-day gains. The GMP can swing dramatically as it’s detached from fundamentals of a stock.

The valuation of the company is seen at ₹77,800-80,000 crore, with a price-to-earnings ratio of 47 times, which is slightly richer when compared to rivals Voltas Ltd., Havells India Ltd. and Blue Star Ltd.

The LG India IPO is open for subscription from 7-9 October. The allotment date is 10 October. The listing date is 14 October.

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Anand Rathi has rated the IPO “Subscribe”, pointing to LG India’s consistent financial performance and the strength of its parent brand. They believe LG’s margins and profitability make it a good bet in India’s growing home-appliance/consumer durables sector.

ICICI Securities has issued a “Subscribe” recommendation, citing that LG can leverage its strong brand, technological know-how, and execution capabilities. They note the company’s “cash-rich balance sheet”, superior margins, and return ratios as supportive of its valuation.

Choice Broking recommends a “Buy/Subscribe” stance. They point out that at the upper band, LG is valued at a P/E of ~ 38X (based on trailing earnings) and EV/Sales of ~ 3.0X, which they consider reasonable relative to peers, given LG’s market leadership, strong brand, and growth potential.

EquityMaster cautions that the IPO is purely an OFS, and that near-term listing gains may be capped. They acknowledge that LG’s brand, business scale, and growth trajectory give it strong potential over a longer time horizon.

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Geojit Research notes that while the IPO is priced at ~35X FY25 earnings, the valuation is justified by LG’s leadership in categories, high ROE, and its wide distribution footprint. They recommend the issue more for medium-to-long term investors.