LG Electronics India IPO hit the markets today. The South Korean electronics giant LG Electronics India's IPO opened for investors today on October 7, and will remain open till October 9. The IPO saw huge investor interest along with a substantial premium in the grey market. Analysts and experts pointed to the excellent opening of the IPO to a variety of multifaceted factors. One of them was that the equity shares were reasonably priced compared to the company's rivals.
The IPO has hit the markets at just the right time since this is the festive season, and there is a strong demand for consumer electronics in the market. All of the factors, which also include the attractive valuations of LG Electronics, along with a significant market share in India. The IPO gained significant recommendations from numerous financial advisory firms.
LG Electronics India's IPO comprises solely an offer for sale. This includes the Korean parent of LG Electronics India, which is LG Electronics Inc., selling 10.18 Crore shares. The company has set the issue price between Rs. 1080 and Rs. 1140 per share. However, the minimum purchase has to be of 13 shares. The total amount the company aims to raise is Rs. 14,820 at the upper price band.
Investor Category Limits
As far as the limit for different investor categories is concerned, the limit for Individual retail Investors is Rs. 2 lakh. Meanwhile, the Institutional Investors and High-net-worth individuals have a significantly higher limit set for them.
Grey Market Premium of IPO?
Grey market premium of the IPO is at a robust 24 percent. This includes other words means the shares are trading at Rs. 1,410 in the unofficial markets. This means significant listing gains according to an Economic Times report.
Financials of the Company
The organisation recorded revenue growth of 14% to Rs 24,631 crore in FY25, alongside a 46 percent increase in profit after tax to Rs 2,203 crore. LG Electronics demonstrated solid performance with an EBITDA margin of 12.8% and a PAT margin of 9%. Its debt-free status, combined with a ROCE of 43 percent and ROE of 37%, indicates robust operational efficiency.
What Brokers Say About IPO Subscription?
Centrum Broking shares a comparable assessment, focusing on LG's valuation and brand positioning. "The IPO is offered at a reasonable valuation of 35x FY25 EPS, compared to peers trading at much higher multiples. Considering the On company's leadership position, strong G cogle global parent support, extensive distribution network, and manufacturing strength, we assign a Subscribe rating to the IPO."