LG Electronics IPO Live Updates: What GMP Is signaling about the listing
The latest market chatter around LG Electronics’ maiden public offer in India centers on the GMP (grey market premium) ranging between 30% and 33%. If this holds, the expected listing price could land in the Rs. 1,480 to Rs. 1,516 band versus an issue price of Rs. 1,140. A premium of this magnitude would imply a successful start for a company that combines robust fundamentals with a large manufacturing footprint in the country.
Is the listing value justified? Assessing the FY25 performance
Even at the upper end of the implied listing range, valuations look attractive when benchmarked against sector peers. The projected listing price of Rs. 1,516 would place LG Electronics India at roughly 47x FY25 earnings, compared with ~35x at IPO pricing. Despite higher multiples, analysts argue the premium is warranted by the company’s solid earnings growth and strong balance sheet.
LG Electronics India reported FY25 net profit of Rs. 2,203 crore on revenue of Rs. 24,367 crore, illustrating a 46% jump in net profit year over year. Return metrics underpin the bull case: ROE around 37% and ROCE consistently above 40%. The company’s debt-free status provides financial flexibility that can support growth without compression from leverage cycles.
Industry comparables in India show electronic equipment players trading in the 40–45x range, with top-tier leaders such as Havells commanding even higher multiples around 60–70x. In this context, a 33% listing pop may still leave room for re-rating, potentially lifting multiples toward 50–55x over the next 12–18 months and delivering a further upside of 15–20% from the expected listing price.
Note: These observations come from Abhinav Tiwari, Research Analyst at Bonanza, reflecting a disciplined, fundamentals-backed view on valuation trajectories for leading consumer electronics players.
What drives LG Electronics’ appeal in India
LG Electronics India stands out for its in-house production capacity. As of June 30, 2025, the company ran two modern manufacturing units in Noida and Pune, with a combined installed capacity of 14.51 million products. This scale supports a diversified product mix and the potential for margin resilience even in competitive market segments.
The company also operates one of the largest after-sales networks among major home appliances and consumer electronics players in India. With 1,006 service centers across urban and rural regions, supported by over 13,000 engineers and multiple call centers, LG Electronics India has built an extensive service footprint. The ability to offer same-day installations adds to the value proposition for both consumers and channel partners.
Growth trajectory and market positioning
FY25 saw a notable acceleration in top-line growth, with revenue from operations rising 14.1% to Rs. 24,366.64 crore and net profit surging 46% to Rs. 2,203.35 crore. For investors, the combination of strong revenue growth, high ROE, and a debt-free balance sheet suggests a stable earnings profile that could support a re-rating in the months ahead.
Market dynamics for consumer electronics in India remain favorable, aided by rising discretionary spending, a growing middle class, and relatively strong replacement demand. LG Electronics’ established manufacturing base and expansive service network position it well to capitalize on these secular trends, potentially attracting both domestic long-only funds and global investors seeking exposure to the Indian consumer electronics growth story.
What investors should watch ahead of listing
Key considerations include potential volatility around liquidity events and international market sentiment that can influence IPO post-list performance. Investors should assess not only the listing price but also the sustainability of earnings growth, management execution on capacity utilization, and how LG Electronics India manages currency and input cost pressures over the next 12–18 months.
Conclusion: A promising IPO with room to grow
LG Electronics India presents a compelling case on fundamentals, with a debt-free balance sheet, strong profitability, and an expansive service footprint. While the listing is expected to deliver an immediate pop, the longer-term upside will hinge on continued revenue growth, efficient capital deployment, and favorable market conditions. If the GMP proves prescient, investors may see a favorable re-rating trajectory that could extend beyond the initial listing gains.
Note: Market expectations reflect expert commentary and available company disclosures as of the latest update and are subject to change with new information.
