LG Electronics IPO Allotment: Final Subscription & Allotment Chances
The LG Electronics India Limited (LGEIL) IPO has closed today, October 9, 2025, and the response has been nothing short of spectacular. This mega IPO is heavily subscribed across all categories, validating the attractive valuation and strong brand power.
Personally i have applied full force in the LG Electronics IPO ✍️
1. Bumper Subscription & Allotment Chances 🔥
The final subscription numbers reflect massive institutional interest and a strong retail turnout, demonstrating high investor confidence in the brand and valuation:
| Category | Subscription (Day 3) | Total Applications (Approx.) | Allotment Chance |
|---|---|---|---|
| Qualified Institutional Buyers (QIB) | 166.51x | 8,271 | High Demand |
| Big - HNI (BHNI) | 24.68x | 2.54 L | 1 out of 4 |
| Small - HNI (SHNI) | 17.98x | 4.60 L | 1 out of 16 |
| Retail Subscription | 3.55x | 58.84 L | 1 out of 2 |
| Total Subscription | 54.02x | 66,65,535 |
The Retail category was oversubscribed 3.55 times, translating to an excellent chance of allotment at 1 out of 2. The massive demand from QIBs (166.51x) confirms the institutional belief in the stock's long-term value, setting the stage for a strong listing.
2. Final GMP: Strong Listing Gains Expected
The Grey Market Premium (GMP) has jumped significantly by the closing day, providing further confidence in short-term gains:
| GMP (as of Oct 09) | Estimated Listing Price |
|---|---|
| ₹360 | ₹1500 (31.58%) |
A GMP of ₹360 translates to a potential listing gain of over 31%, which is excellent for a mainboard IPO of this size. This jump in GMP is directly related to the high institutional subscription and the realization of the stock's comparative undervaluation.
3. Attractive Valuation
The most compelling reason to apply is the pricing. LG Electronics is entering the market at a significant discount to its domestic peers. This makes the stock a relative value play, which is the primary driver for anticipating strong listing gains and future upside.
| Company | P/E Ratio (Post-IPO Upper Band) |
|---|---|
| LG Electronics | 37.69x |
| Havells | 66x |
| Voltas | 70x |
Trading at nearly half the valuation of industry leaders suggests significant room for re-rating post-listing, especially given its debt-free status and robust profitability.
4. Mega Expansion Plans for Global Hub Status
LGEIL is doubling down on its India operations to position the country as a global production hub. This mega plan includes:
- ₹5,000 Crore Investment: An investment for new product lines and capacity expansion.
- Third Manufacturing Plant: A new plant is coming up at Sri City, Andhra Pradesh, expected to be operational by November 2026.
- Capacity Doubling: LGEIL plans to double its manufacturing capacity over the next five years, significantly boosting its existing units in Noida and Pune.
5. Financial Muscle: Debt-Free & High RoNW
The company's financial profile is exceptionally strong, showcasing efficiency and capital management:
- Debt-Free Status: The company reports NIL Borrowings, making it a debt-free entity.
- High Profitability: Profit for the year nearly doubled in three years, rising from ₹1,511 Cr in FY24 to ₹2,203 Cr in FY25.
- Excellent Returns: The Return on Net Worth (RoNW) stands at a healthy 37% for FY25, indicating high efficiency in utilizing shareholder equity.
6. Key IPO Details and Dates
| Particulars | Details |
|---|---|
| IPO Open / Close | Oct 7 - 9, 2025 |
| Price Band | ₹1080 – ₹1140 |
| Lot Size | 13 shares (~₹14,820) |
| Allotment Date (Tentative) | October 10, 2025 |
| Listing Date (Tentative) | October 14, 2025 |
7. Final Conclusion & Strategy
The LG Electronics India IPO is an exceptional high-quality company available at an attractive valuation. The strong brand, market leadership, debt-free balance sheet, and backward integration are overwhelming positives. The high subscription numbers and strong GMP confirm the strong market appetite. I believe this stock offers the rare combination of potential for good listing gains and a strong long-term hold due to its underlying fundamentals.
SEO-Based FAQs
Q. Is LG Electronics IPO fully OFS?
A. Yes, the entire ₹11,607 Crore LG Electronics India IPO is a Full Offer For Sale (OFS), meaning the company will not receive any proceeds from the issue.
Q. What is the final subscription status of the LG Electronics IPO?
A. The IPO was subscribed 54.02 times overall, with the QIB portion receiving 166.51x subscription and the Retail portion subscribing 3.55x.
Q. What are LG Electronics India's major expansion plans?
A. The company plans to double its manufacturing capacity over five years, investing ₹5,000 Crore in a new manufacturing plant at Sri City, Andhra Pradesh, to turn India into a global production hub.
Q. When is the LG Electronics IPO expected to list?
A. The allotment is expected on October 10, 2025, and the shares are tentatively scheduled to be listed on BSE and NSE on October 14, 2025.
Q. Is LG Electronics a debt-free company?
A. Yes, the company's financial statements show NIL Borrowings, confirming its debt-free status.
Q. What is the allotment date for LG Electronics IPO?
A. LG Electronics IPO allotment will be out on 10th October 2025. Check it out on IPOwiz App.
Q. What are the allotment chances for retail investors?
A. The allotment chance for retail investors is approximately 1 out of 2 applications, due to the final retail subscription rate of 3.55x.