LG Electronics India IPO Sees Strong Investor Response, Fully Subscribed on First Day
Mumbai — LG Electronics India has received an enthusiastic response from investors as its $1.3 billion Initial Public Offering (IPO) was fully subscribed on the first day of bidding, highlighting robust market confidence in the company’s growth prospects.
The swift subscription reflects optimism about India’s appliance sector and the opportunities presented by a rapidly expanding consumer market.
The IPO, which values LG Electronics India at $8.7 billion at the upper end, attracted strong participation from both retail and non-institutional investors.
Non-institutional investors showed particular interest, bidding 2.3 times the shares reserved for them, while retail investors subscribed to 81% of their allocation. Institutional investors, including anchor investors such as BlackRock and the sovereign wealth funds of Singapore and Norway, participated actively, signaling confidence in the company’s long-term prospects.
The successful subscription comes at a time when India’s IPO market is gaining momentum, with firms collectively expected to raise up to $8 billion. Analysts note that LG Electronics India is well-positioned to capture growth in the country’s under-penetrated appliance market, benefiting from recent reforms in the goods and services tax (GST) that have lowered duties on major appliances and boosted consumer demand.
LG Electronics India has outlined plans to expand its presence across smaller towns and cities, ensuring its products reach more households nationwide. The company’s refrigerators, its largest revenue driver, account for only 35% of total appliance sales in India, highlighting significant room for growth compared to mature markets like the U.S. and China.
Competition in the domestic market includes established brands such as Whirlpool and Samsung, yet LG’s innovative offerings, strong brand recognition, and expanding retail footprint position it to capture a growing share of India’s $38.2 billion appliance market, which is projected to grow 12% annually through 2029, according to RedSeer consultancy.
The company plans to close the IPO on Thursday, with stock trading expected to begin on October 14, providing investors with an opportunity to participate in India’s growing appliance sector. The successful debut reinforces LG Electronics India’s reputation as a trusted brand and its commitment to delivering innovative, high-quality products to a rapidly expanding consumer base.
Industry observers highlight that the IPO’s strong reception reflects not only LG’s financial stability and operational strength but also the broader confidence in India’s consumer-driven economy. With continued urbanization, rising disposable incomes, and increasing appliance adoption in smaller towns, LG Electronics India is poised to drive long-term growth while enhancing shareholder value.
The enthusiastic subscription and anchor investor participation underscore a bright future for LG Electronics India, marking a milestone in India’s corporate growth story and reinforcing the company’s position as a leading player in the domestic and regional appliance market.
