LG Electronics India made a stellar debut on the Indian stock exchanges on Tuesday, October 14, after a highly successful initial public offering (IPO). Shares of the consumer electronics and home appliances giant listed at Rs 1,710.10 on the NSE, marking a 50 percent premium over the issue price of Rs 1,140 per share. On the BSE, the stock opened slightly higher at Rs 1,715.
The Rs 11,607 crore IPO received an overwhelming response from investors, subscribing 54.02 times on the final day of bidding. According to NSE data, the issue saw bids for more than 385 crore shares against an offer size of 7.13 crore shares. The institutional investor segment led the demand with subscriptions of 166.51 times, while non-institutional and retail investor categories were subscribed 22.44 times and 3.54 times, respectively.
At the upper price band, LG Electronics India was valued at about Rs 77,400 crore. The IPO was entirely an offer for sale by the South Korea-based parent, meaning the Indian arm did not receive any fresh capital from the issue. This makes LG Electronics the second South Korean company to go public in India, following Hyundai Motor India’s listing last year.
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Analysts view the strong listing as a reflection of both brand strength and optimism in India’s growing consumer durables sector. They point out that India’s home appliances and electronics market is projected to grow at nearly 11 percent CAGR between 2024 and 2029, reaching close to Rs 11 trillion by the end of the period. Excluding mobile phones, which LG exited in FY23, the industry is expected to grow even faster at around 14 percent CAGR.
Market experts believe LG Electronics India is well positioned to benefit from this trend, given its leadership across major product categories, wide distribution reach, and deep understanding of Indian consumer preferences. The company has also been steadily increasing localisation by 1–2 percent annually, which is expected to support profitability and enhance its EBITDA margin.
Brokerage firm Elara Capital noted that LG Electronics operates with an asset-light model and industry-leading return ratios, with RoE and RoCE at 45 percent and 46 percent, respectively, for FY25. It also highlighted that the IPO was attractively priced at 35 times FY25 earnings per share, about 50 percent cheaper than listed peers.
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Analysts further point to several structural tailwinds driving growth in the sector, including rising urbanisation, increased electrification, and the growing number of nuclear families. These demographic shifts are creating sustained demand for home appliances and premium products. At the same time, the penetration of durable goods in India remains low compared with developed markets, leaving significant room for expansion as income levels and aspirations rise.
Experts believe that LG Electronics’ strong brand recall, robust distribution, and focus on innovation place it in an advantageous position to capture this next phase of growth. For long-term investors, the company’s leadership position and exposure to India’s expanding consumer economy make it an attractive story to watch.
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Disclaimer: This post is for general informational purposes only. It does not constitute financial advice. Please consult a qualified professional before making financial decisions.
