Missed LG India IPO? Here's why it's still worth a look

Summary: Is LG India still worth betting on after its 50 per cent debut gain? Institutional investors saw something beyond the hype — fundamentals, cash flow strength and a front-row seat to India’s consumer boom. But with valuations now lofty and competition heating up, does the story still hold up? LG India’s IPO attracted the second-highest subscription amount in India’s history at Rs 4.4 lakh crore against the offer of Rs 11,607 crore. That milestone was a result of institutional investors and high-net worth individuals (HNIs) queuing up in droves, signalling conviction in the fundamentals rather than chasing a listing-day thrill. Retail investors, meanwhile, largely sat out with a puny subscription of 3.55 times. That pales in comparison with the qualified institutional buyers (QIB) category’s 166.51 times and the non-institutional investors (NII) category’s 22.45 times. LG Electronics IPO collected Rs 40 for every Rs 1 demanded Company Year IPO size (Rs cr) IPO Collections (Rs lakh cr) Reliance Power 2008 10,123 7.1 LG Electronics India 2025 11,607 4.4 Bajaj HF 2024 6,560 3.3 Nykaa 2021 5,350 2.4 Waaree Energies 2024 4,321 2.4 Coal India 2010 15,199 2.3 Zomato 2021 9,375 2.2 Adani Ports 2007 1,771 2.1 SBI Cards 2020 10,341 2 Source: Business Line The low retail interest for a company of this stature and brand feels unusual at first when even small public offers are deriving mass retail subscriptions. But they likely had some valid reasons: Retail caution in LG India was akin to Hyundai India’s IPO last year. Both were large OFS issues, with money going to selling shareholders rather than growth initiatives. Like Hyundai’s parent, LG Electronics—the global Korean parent of LG India—trades at much lower valuations overseas. These reasons likely tempered retail participation. But after such a head-turning debut, is there still a reason to invest? Is LG India still worth a look? The blockbuster listing gains don’t broadly change the investment thesis that institutional players bet on. Here’s why: Solid fundamentals: Almost debt-free, consistently cash-generative, with ROCE among the best in consumer durables, LG India’s financials reflect sustainable strength. Even before listing, the company was clocking EBITDA margins near 10 per cent and profit after tax margins around 7 per cent, comfortably ahead of most consumer durable peers. Fundamentals that command attention The

This article was originally published on October 16, 2025.