Mumbai: LG Electronics India Ltd, the Indian arm of South Korean giant LG, will make its debut on the stock exchanges on Tuesday. Ahead of the listing, the IPO is creating excitement in the market, with a sharp rise in its Grey Market Premium (GMP), indicating strong investor interest and expectations of a big opening.
Grey market premium hints at 32 percent listing gain
As of Monday morning, the GMP for LG Electronics India stood at Rs 370 per share, according to market observers. With the IPO’s upper price band set at Rs 1,140, the shares could list around Rs 1,510—about 32.5 percent higher. However, investors should remember that GMP is unofficial and based on market sentiment, so it can fluctuate.
Biggest IPO Subscription Ever
LG Electronics India’s IPO set a new record in India’s capital markets. The issue received total bids worth Rs 4.39 lakh crore, surpassing the previous record of Rs 3.2 lakh crore set by Bajaj Housing Finance in 2024. According to NSE data, the IPO was subscribed 54.02 times in total.
Highest Demand from Institutional Buyers
Among investor categories, Qualified Institutional Buyers (QIBs) led with a massive 166.51 times subscription. Non-Institutional Investors (NIIs) subscribed 22.42 times, while the employee quota was subscribed 7 times, and the retail category saw 3.54 times booking. The IPO was a pure Offer for Sale (OFS), so no new shares were issued, and the company will not receive fresh capital.
Strong Financials Back Company’s Valuation
In FY25, LG Electronics India reported revenue of Rs 24,631 crore, up 14 percent from the previous year. Profit after tax grew 46 percent to Rs 2,203 crore. The company maintained strong margins with EBITDA at 12.8 percent and PAT margin at 9 percent. It has zero debt, a Return on Capital (RoC) of 43 percent, and Return on Equity (RoE) of 37 percent, showing its strong operational performance and financial health.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should consult a certified advisor before investing. Market conditions and grey market premiums may vary.
