India’s equity markets just witnessed a milestone moment. LG Electronics India Ltd has become the first company in the country’s history to record over ₹4 lakh crore worth of bids for its initial public offering (IPO). The public issue, which closed on October 9, 2025, received bids totaling approximately ₹4.39 lakh crore, setting an unprecedented benchmark in India’s IPO landscape.
This achievement underscores investors’ confidence in both LG’s growth prospects and the broader potential of India’s consumer-electronics market, which is expanding rapidly on the back of rising incomes and digital adoption.
Highlights of the Record-Breaking IPO
1. Oversubscription and Scale
The response to LG’s IPO was nothing short of extraordinary. Against an offer size of just 7.13 crore shares, investors placed bids for more than 385 crore shares, translating to an overall subscription of 54 times. The total value of applications—₹4.39 lakh crore—comfortably surpassed the previous record of ₹3.24 lakh crore set by Bajaj Housing Finance in 2024.
2. Issue Details and Pricing
The IPO was priced in the ₹1,080–₹1,140 per share range, valuing the company at nearly ₹77,400 crore at the upper end. The entire offering was structured as an Offer for Sale (OFS), with South Korea’s LG Electronics Inc.—the parent company—offloading about 10.18 crore shares. No new capital was raised, as the goal was primarily to unlock value and broaden the Indian shareholding base.
3. Who Subscribed and by How Much
The strongest demand came from Qualified Institutional Buyers (QIBs), who subscribed their reserved portion an astonishing 166 times. High-Net-Worth Individuals (HNIs) and Non-Institutional Investors (NIIs) followed with a subscription of over 22 times, while retail investors subscribed about 3.5 times their allocation. Even the employee quota was oversubscribed more than seven times—a testament to the brand’s popularity and market trust.
4. Anchor Investment Momentum
Before the issue opened to the public, LG Electronics India raised ₹3,475 crore from a roster of prominent anchor investors, including global mutual funds and sovereign institutions. This early backing set the tone for what would become one of the most sought-after IPOs in Indian market history.
Why Investors Rushed In
Several structural and sentiment-driven factors combined to create this record demand:
- Sector Tailwinds: India’s consumer-electronics sector is benefiting from tax incentives, import-duty adjustments, and a shift toward locally manufactured premium appliances.
- Growth Potential: Penetration of home appliances in smaller towns remains low, offering long-term upside for established players like LG.
- Strong Brand Equity: LG’s decades-long presence and dominant position across categories such as televisions, air-conditioners, and refrigerators inspired confidence among institutional and retail investors alike.
- Grey Market Premium (GMP): Reports of an unofficial premium of around ₹325–₹330 per share ahead of listing added speculative enthusiasm to the mix, especially among short-term traders expecting listing gains.
Cautionary Notes and Governance Concerns
Despite the euphoria, some analysts have advised caution. InGovern, a corporate-governance advisory firm, flagged potential tax and royalty disputes amounting to nearly ₹4,700 crore, which could impact the company’s profitability if provisions are required in future financials.
Additionally, even after the IPO, the Korean parent will retain about 85% ownership, leaving relatively limited influence for public shareholders. Observers suggest keeping an eye on related-party transactions and royalty agreements to ensure transparency and fair valuation for minority investors.
Implications for India’s IPO Market
LG Electronics India’s historic subscription level signals a maturing and liquid Indian capital market. Several trends stand out:
- Institutional Depth – The overwhelming QIB participation shows how much dry powder institutional investors are willing to deploy for high-quality issuances.
- Retail Discipline – Though retail participation was smaller relative to institutions, the steady demand indicates growing retail awareness of valuation and governance factors.
- Valuation Confidence – Investors were willing to bet heavily on established, globally recognized companies, a sign that Indian markets now favor quality over speculative momentum.
- Benchmark for Future Mega-IPOs – The ₹4 lakh crore milestone resets expectations for upcoming offerings from large domestic and multinational companies looking to list in India.
Looking Forward
The shares are scheduled to list on October 14, 2025, on both the NSE and BSE. Allotments will likely be finalized around October 10, with refunds and demat credits processed by October 13. Given the massive oversubscription and strong GMP, analysts anticipate a robust listing day, though long-term performance will hinge on sustained earnings growth and resolution of pending regulatory issues.
LG Electronics India’s IPO is more than just a record-shattering financial event—it symbolizes the growing sophistication of India’s capital markets and the faith investors place in established global brands with deep local roots. While the ₹4 lakh crore subscription figure will dominate headlines, the real success of this offering will be measured by how effectively the company continues to deliver innovation, transparency, and shareholder value in the years to come.
