The initial public offering (IPO) of LG Electronics India was fully subscribed on its first day, driven by brokerages rating the issue as attractively valued compared to peers with most recommending a subscribe rating. The Rs 11,607 crore IPO received a subscription of 1.04 times on day one.
The IPO, closing this Thursday, has a price band of Rs 1,080 to Rs 1,140 per share, valuing the company at about Rs 77,400 crore at the upper band. In the unofficial grey market, LG shares are trading around Rs 1,418, reflecting a 24% premium over the IPO’s upper price band.
The quota set for non-institutional investors secured a 1.90 times subscription, while the category for retail investors got a 75% subscription. The quota for qualified institutional investors was 49% booked. On Monday, LG raised Rs 3,420 crore from anchor investors. The IPO, entirely an offer-for-sale by the South Korea-based parent, will see it divest 15% of its stake.
“At the upper end of its price band, LG India is valued at a P/E of 38x (TTM EPS Rs 30) and EV/Sales of 3x, trading at a discount to its industry peers. Given its market leadership, strong brand, robust growth prospects, and strategic expansion into high-potential B2B segments, the company is well-positioned to benefit from rising demand. Thus, we recommend a ‘SUBSCRIBE’ rating,” said Choice Broking in an IPO note.
LG Electronics India has shown strong growth and improved profits over the last few years. From FY23 to FY25, the company’s sales increased steadily from around Rs 19,865 crore to Rs 24,367 crore. Profit after tax grew from Rs 1,348 crore in FY23 to Rs 2,203 crore in FY25.
Meanwhile, the much hyped IPO of Tata Capital is yet to garner full subscription after two days of share sale. The Rs 15,512 crore issue, the biggest of 2025 so far, has been subscribed 0.75 times on the second day of bidding. So far, qualified institutional buyers have led the demand as they picked up 86% of the shares reserved for them. The quota for non-institutional investors (NIIs) garnered 76% subscription while the retail portion was subscribed 67%. On Friday, Tata Capital raised Rs 4,642 crore from 68 anchor investors.
The IPO of co-working giant WeWork India managed to sail through on the last day of bidding. The Rs 3,000-crore IPO was subscribed 1.2 times amid clouds over its governance structure. Sentiment was affected due to criminal cases against the promoters and concerns about the company’s profitability.
The qualified institutional buyers’ category was booked 1.79 times, while the quota for retail investors received 61% subscription. The portion for non-institutional investors got only 23% subscription. WeWork India has collected a little over Rs 1,348 crore from anchor investors.