LG Electronics India’s USD 1.3 billion initial public offering attracted robust demand, achieving full subscription on its first day of offering on Tuesday. The response underscores strong investor confidence in the firm, which stands as India’s second-largest home appliance manufacturer, amid heightened IPO activity across the country.
The company’s much-anticipated public debut follows delays attributed to India’s overhaul of its goods and services tax structure, which involved significant duty reductions on high-value consumer products—measures aimed at stoking demand for appliances.
Priced at the top end, the IPO values LG Electronics India at USD 8.7 billion, entering a market environment where domestic listings are gaining momentum, with local companies collectively seeking as much as USD 8 billion via fresh offerings.
By the end of the first of its three-day bidding window, the IPO was oversubscribed by 1.04 times, drawing in bids worth approximately INR 84.9 billion (USD 957 million), according to exchange data.
Non-institutional investors dominated demand, bidding for 2.3 times the shares allotted to them. Meanwhile, retail investors claimed 81% of their reserved portion, while institutional buyers acquired 49%, as of 4:51 P.M. IST.
Looking ahead, LG Electronics India has communicated intentions to accelerate expansion in the “highly under-penetrated” Indian market, with plans to diversify its product portfolio and extend its retail reach in smaller towns.
Refrigerators represent LG’s primary revenue stream in India, accounting for 35% of its appliance sales, a figure that lags behind the near-universal penetration rates seen in the U.S. and China, according to a corporate presentation.
Domestically, LG faces competition from Whirlpool and Samsung—both established players in a market projected by consultancy RedSeer to grow 12% annually through 2029. As of 2024, industry value stood at USD 38.2 billion.
Ahead of the IPO, LG Electronics India secured close to USD 392 million from cornerstone investors, including BlackRock and sovereign wealth funds from Singapore and Norway.
