Investor Update: LG Electronics India IPO — A Record-Breaking ₹11,607 Crore Listing

Overview

LG Electronics India Ltd’s ₹11,607 crore initial public offering (IPO) has made history as one of India’s largest and most heavily subscribed equity issues to date. The appliance and consumer electronics major attracted an astonishing ₹4.4 trillion (US$450.5 billion) worth of bids — the highest ever for a domestic listing.

This extraordinary response surpasses the previous record set by Bajaj Housing Finance, whose ₹6,560 crore IPO in 2024 drew bids worth ₹3.24 trillion.

Key Issue Details

Issue Type: Offer for Sale (OFS) by Promoter
Issue Size: ₹11,607 crore
Price Band: ₹1,080 – ₹1,140 per share
Lot Size : 13 shares
Offer Period: October 7 – 9, 2025
Listing Exchanges: BSE and NSE
Book Running Lead Managers (BRLMs): JM Financial, Kotak Mahindra Capital, Goldman Sachs India, Morgan Stanley India
Promoter Stake Post-IPO: ~85% retained

Subscription Highlights
Investor Category : Subscription (×)
Qualified Institutional Buyers (QIBs): 166.5×
Non-Institutional Investors (NIIs): 22.4×
Retail Investors: 3.54×
Total Subscription: ~54× Overall

The issue witnessed massive participation from institutional investors, including sovereign funds, global asset managers, and domestic mutual funds.

Financial Snapshot (FY25)

Revenue: ₹24,367 crore

Net Profit (PAT): ₹1,243 crore

EBITDA Margin: ~10.1%

ROE: ~18%

Manufacturing Presence: Major facilities in Noida and Pune

Product Segments: Refrigerators, washing machines, air conditioners, televisions, and home appliances

Global Context

The total bid amount of US$450.5 billion received for LG Electronics India’s IPO exceeds the GDP of several countries, including:

Country GDP (US$ billion)
Malaysia 445
Denmark 450
Finland 303.9
Portugal 321.4
Czech Republic 360.2
South Africa 410.3
Pakistan 337.9
New Zealand 248.7

This unprecedented investor appetite underlines the scale and maturity of India’s capital markets, where a single corporate listing now commands attention comparable to the GDP of mid-sized global economies.

Governance & Valuation Notes

Entirely Offer for Sale (OFS) — no fresh capital infusion into the company.

Valuation at Upper Band: ~₹77,380 crore.

Advisory flags: InGovern has cited pending tax, royalty, and related-party exposure amounting to ₹4,717 crore.

Despite this, strong subscription reflects investor faith in LG’s brand dominance, profitability, and market leadership in India’s consumer durables sector.

Market Implications

Record-Breaking Demand: The IPO reaffirms India’s position as one of the most liquid and investor-rich markets globally.

Institutional Depth: QIB oversubscription of over 160× highlights strong FII and domestic fund participation.

Confidence in India’s Consumption Story: Investors are betting on India’s rising middle class, premiumization of consumer demand, and manufacturing growth under the “Make in India” ecosystem.

Symbolic Undercurrent: The record-breaking response directly contrasts political narratives questioning India’s economic vitality — as one social media comment wryly noted,

Trump said India is a dead economy 🙂; the market says otherwise.

Investor Insight

LG Electronics India’s IPO demonstrates:

Unprecedented liquidity depth in Indian capital markets.

Global confidence in India’s consumption-driven growth model.

Retail investor resilience, even amid volatility.

Validation of India’s position as Asia’s capital market powerhouse.