LG Electronics IPO set for strong debut tomorrow, street expects 33% listing gains

LG Electronics India is poised for a blockbuster listing on the bourses tomorrow, with analysts and grey market trends pointing to hefty debut gains of 30–33 per cent over the issue price of ₹1,140 per share.

Market watchers expect the stock to list in the range of ₹1,480-₹1,516, reflecting strong investor appetite and solid fundamentals.

The ₹11,607 crore IPO of LG Electronics India mobilised 54.02 times subscription on the final day of bidding, becoming the second-largest IPO in Indian history.

The IPO, priced in the band of ₹1,080 to ₹1,140 per share with a lot size of 13 shares, was entirely an OFS, with proceeds going to LG Electronics’ South Korean parent. The company secured around ₹3,475 crore from anchor investors, including global institutional funds.

According to Abhinav Tiwari, Research Analyst at Bonanza, LG Electronics’ GMP of 30–33 per cent indicates a strong listing, with valuations “still looking attractive even at the higher band.”

“At an expected listing price of around ₹1,516, the stock would trade near 47x FY25 earnings compared to 35x at the IPO price. Despite the premium, the valuation is justified by LG’s consistent growth, profitability, and a debt-free balance sheet,” he added.

Financially, LG Electronics has delivered impressive numbers — its FY25 net profit surged 46 per cent to ₹2,203 crore on revenues of ₹24,367 crore, while maintaining a robust return on equity (ROE) of 37 per cent and return on capital employed (ROCE) above 40 per cent.

The company’s balance sheet remains debt-free, providing significant financial flexibility and positioning it ahead of peers in the consumer electronics sector.

Brokerage houses have maintained a subscribe for listing gains view on the issue, citing LG’s strong brand recall, extensive distribution network, and premium product positioning.

Sectorally, Indian electronic equipment companies trade at 40–45x PE, with leaders like Havells commanding 60–70x multiples.

Tiwari noted that even after a 33 per cent listing gain, LG Electronics could witness a further valuation re-rating, potentially expanding to 50–55x earnings over the next 12–18 months.

This implies an additional 15–20 per cent upside from expected listing levels, he added.

All eyes are now on tomorrow’s debut, with investors anticipating one of the most successful large-cap listings of the year.

Published on October 13, 2025