Poised for a strong debut, LG Electronics India’s IPO draws investor attention amid booming consumer durables demand.
The initial public offering (IPO) of LG Electronics India Ltd opened for bidding on Monday, drawing strong interest from both retail and institutional investors. Incorporated in 1997, the company is among India’s largest manufacturers and distributors of consumer electronics and home appliances, with leading positions in washing machines, refrigerators, air conditioners, televisions, and microwaves.
The IPO is priced between Rs 1,080 and Rs 1,140 per share, with a grey market premium (GMP) of Rs 318, suggesting a potential listing gain of nearly 28%. Analysts expect robust participation given the company’s strong brand presence and market leadership across key product categories.
Brokerages have largely given the IPO a positive outlook. Choice Broking recommended a “Subscribe” rating, citing LG’s growth prospects and brand strength. Elara Capital also advised investors to “Subscribe” with a long-term view, noting the IPO’s attractive valuation at a price-to-earnings multiple of 35x FY25 earnings around 50% lower than peers.
Analysts highlighted LG’s expanding localisation efforts, which have risen from 40% to 54% over five years, and its strong profitability, with an industry-leading EBITDA margin of 12.8%. However, they also cautioned about potential risks, including contingent liabilities of Rs 3.15 billion, rising competition, and possible demand slowdowns.
With India’s consumer durables market projected to grow at a 14% CAGR through 2029, LG Electronics India is positioned to benefit from increasing urbanisation and premiumisation trends. Still, experts advise investors to weigh both opportunities and risks before subscribing to the IPO.
