LG Electronics India Ltd has made history. Its recent Initial Public Offering (IPO) became the first-ever IPO in India to cross the ₹4 lakh crore mark in total subscriptions — a feat that underlines extraordinary investor enthusiasm.
On the final day of its subscription window, the IPO drew bids worth around ₹4.39 lakh crore (or about $49.9 billion) — far exceeding expectations.
This amounted to a subscription rate of 54.02 times over the shares on offer.
Key Details & Numbers You Should Know
Parameter Value / Detail
IPO Size / Offer ₹11,607 crore (offer-for-sale)
Subscription 54.02× overall
Total Bids Received ~ ₹4.4 lakh crore (bids for ~385 crore shares vs ~7.13 crore shares on offer)
Subscription by Category QIBs: ~166.51×; Non-Institutional: ~22.44×; Retail Investors: ~3.54×
Price Band ₹1,080 – ₹1,140 per share
Valuation Sought Up to ~ ₹77,400 crores (or ~ $8.7 billion)
Listing Date Scheduled for October 14, 2025
What This Record Means
Investor Confidence
Crossing the ₹4 lakh crore subscription threshold signals that both institutional and retail investors believe in LG India’s prospects. The strong demand across categories (especially QIBs) reinforces the trust in the business model.
Benchmark for Future IPOs
This IPO sets a new bar. Previously, the record was held by Bajaj Housing Finance with bids totaling ~₹3.24 lakh crore. LG has now raised the bar for scale and investor appetite.
Potential Listing Gains
The grey market premium (GMP) for LG shares surged ahead of listing, signaling expected upside on listing day.
Cautious Notes
Despite the strong reception, some governance and financial risks have been flagged. Advisory firm InGovern pointed out “disputed tax liabilities, royalty payments, and related-party transactions” amounting to ~₹4,717 crore, which could affect future profitability if not resolved well.
The Economic Times
Also, post-IPO, the parent company (LG Electronics Korea) holds ~85% stake, which raises questions about minority shareholder rights.
Challenges & Risks to Watch
Tax & Royalty Disputes
The flagged disputed liabilities could be a drag if court rulings go against the firm.
Governance / Control
With the parent retaining a dominant stake, minority protection and decision-making autonomy become crucial issues.
Valuation Pressure
With lofty expectations baked in, the stock will be under pressure to deliver strong operating performance to justify valuation.
Market Volatility & Macros
Any economic headwinds, interest rate shifts, or consumer spending slowdowns may impact projections for a consumer durables company.
This IPO is a landmark not just for LG India, but for India’s capital markets. It shows that there’s still hunger in the market for bold, large-scale offerings backed by credible brands and strong fundamentals. That said, the real test begins after listing — whether LG delivers on growth, margins, and governance.
If I were an investor, I would watch the listing day closely, but also keep a close eye on how those flagged risks unfold. If all goes well, this could turn into a flagship stock for the consumer durables space.
FAQs
Why is crossing ₹4 lakh crore in subscription important?
Because it’s the first time any IPO in India has achieved that scale of investor demand — indicating exceptional interest and confidence.
How many times was LG’s IPO subscribed?
About 54.02× overall.
Who participated the most?
Qualified Institutional Buyers (QIBs) led with ~166× subscription, then Non-Institutional investors, and retail investors also participated.
What is the IPO pricing range?
₹1,080 to ₹1,140 per share.
When will the shares list on stock exchanges?
Scheduled for October 14, 2025.
What risks are associated with this IPO?
Tax & royalty disputes, dominance by parent company, valuation expectations, market volatility.
The Economic Times
Will minority shareholders have control?
Probably limited — as LG Korea retains ~85% post-IPO.
Is this a fresh capital raise or only offer-for-sale?
It is an offer-for-sale (OFS) — no new shares are being issued, existing shareholders (parent) are selling.
What is the valuation being sought?
Up to ~ ₹77,400 crore (≈ $8.7 billion) at upper price band.
Why did investors rush to this IPO?
Due to LG’s brand strength, leadership in consumer durable categories, favorable valuation, and high expectations of listing gain