IPOName: LG Electronics India Ltd; ListingDate: Oct 14, 2025; IPOSize: ₹11,607.01 Cr; IssuePrice: ₹1,140; ListingPrice: ₹1,710.10; ListingDayGain: 50.01%; OfferType: 100% OFS; Exchange: NSE, BSE; FaceValue: ₹10; Registrar: KFin Technologies;
LG Electronics India IPO Retrospective: The ₹11,607 Cr Mega OFS & 50% Listing Pop
When rumors of an LG Electronics India listing first surfaced, market estimates wildly projected a ₹15,000 Crore issue size. However, when the South Korean consumer durables giant finally hit Dalal Street in October 2025, the reality was a highly optimized, aggressively priced ₹11,607 Crore issue that absolutely electrified the primary markets.
For investors navigating the landscape of Mainboard IPOs, LG Electronics served as a masterclass in wealth unlocking by a foreign parent. Following closely on the heels of the Hyundai Motors listing, this mega-issue proved that Indian retail and institutional capital has an immense appetite for legacy, profitable MNCs. Let us apply fundamental Stock Market Basics to look back at their FY25 profit surge, their controversial royalty payouts, and why the stock skyrocketed 50% on its listing day.
Executive Business Model & "G-local" Dominance
Established in 1997, LG Electronics India Ltd (LGEI) operates as a subsidiary of the South Korean LG Corporation. The company is not merely an importer; it is a manufacturing powerhouse. Operating out of two massive facilities in Noida and Pune, LGEI locally manufactures an astonishing 97% to 98% of its output.
Their product portfolio dominates the Indian household. According to their latest filings, the refrigerator business is their crown jewel, contributing nearly 27.5% of their total turnover. This is closely followed by Air Conditioners (21.6%), Washing Machines (20.7%), and LED/LCD Televisions (20.2%). A vast distribution network of over 36,000 B2C touchpoints and 949 service centers creates a near-impenetrable moat against newer, online-only brands.
Financial Deep Dive: The FY25 Profit Surge
A driving factor behind the immense 54x oversubscription of this IPO was the spectacular financial results released just prior to the listing. (To understand how to track these pre-IPO financial filings, read our guide on How to read DRHP effectivey).
| Financial Metric | FY 2024 | FY 2025 | Growth Trend |
|---|---|---|---|
| Revenue from Operations | ₹21,352 Cr | ₹24,366 Cr | Strong (+14.1% YoY) |
| Profit After Tax (PAT) | ₹1,511 Cr | ₹2,203 Cr | Exceptional (+45.8% YoY) |
| Return on Equity (ROE) | ~36.5% | ~37.1% | Highly Efficient |
| Total Borrowings (Debt) | Virtually Nil | Virtually Nil | Debt-Free Balance Sheet |
Scaling a ₹20,000+ Crore top line by 14% is impressive, but surging the bottom-line net profit by nearly 46% to ₹2,203 Crore is what triggered institutional frenzy. The company achieved this through premiumization—selling higher-margin products like OLED TVs, smart refrigerators, and inverter ACs—while keeping a tight lid on manufacturing costs.
Listing Day Performance: A 50% Wealth Creator
The pricing strategy executed by the lead managers (Morgan Stanley, JP Morgan) was flawless. They priced the issue at ₹1,140 per share, demanding a trailing P/E of roughly 35x. When compared to domestic peers like Voltas (trading at 90x+ P/E) or Blue Star (75x+ P/E), LG Electronics was left incredibly cheap on the table.
| Stock Performance Metric | Data Point |
|---|---|
| Issue Price | ₹1,140 per share |
| Listing Price (Oct 14, 2025) | ₹1,710.10 (NSE) |
| Listing Day Gain | +50.01% |
| QIB Subscription Status | 166.51 Times |
The 166x subscription from Qualified Institutional Buyers meant that mutual funds and FIIs were desperate for allocation. On listing day (October 14, 2025), the stock exploded out of the gates, listing at ₹1,710.10 and handing retail investors a massive ₹7,400+ profit on a single ₹14,820 lot.
SWOT Analysis
Strengths
- Capital Efficiency: Generating a ~43% ROCE with a virtually debt-free balance sheet makes LG India a cash-printing machine.
- Market Leadership: Undisputed dominance in refrigerators and washing machines provides immense pricing power against retailers.
Cons & Critical Risks
- Parent Dependency: They are entirely reliant on the South Korean parent for R&D, technology patents, and supply chain support. Royalty rates can theoretically be increased, hurting domestic minority shareholders.
- Fierce Competition: Competitors like Samsung, Haier, and newer D2C brands are constantly initiating price wars to capture market share in the budget segments.
Analyst Verdict & Current Strategy
The LG Electronics India IPO was a textbook example of how a fairly priced, high-quality MNC can create massive wealth in the Indian primary markets.
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