LG Electronics’ US$1.3 billion India IPO fully subscribed on first day
The share sale signals growing confidence that investor demand can absorb large issuances despite the headwinds facing the local stock market
[MUMBAI] LG Electronics’ US$1.3 billion initial share sale in its Indian unit was fully subscribed on the first day, in a rare feat for a mega issue in India.
The South Korean parent is offering shares of LG Electronics India at 1,080 rupees to 1,140 rupees each. That would value the company at as high as 774 billion rupees (S$11.2 billion), making it the largest home-appliance maker listed in India.
The shares are expected to begin trading on Oct 14.
The firm’s offering of 71.3 million shares got the bulk of demand from wealthy individual investors, while the portion reserved for employees was fully covered.
The share sale, which comes a day after Tata Capital started taking orders for its US$1.7 billion initial public offering (IPO), signals growing confidence that investor demand can absorb large issuances despite the headwinds facing the local stock market. All in all, Indian IPO proceeds could climb to a record in October, exceeding US$5 billion.
The wave of new listings in India has also been powered by a gush of liquidity coming from domestic institutional as well as retail investors. Local investors have plowed money into Indian stock funds every month in recent years, with flows into recurring investment plans topping US$3 billion in most months of 2025.
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“IPO activity shows the faith markets have in the Indian economy,” Sundararaman Ramamurthy, chief executive of BSE, operator of the country’s oldest bourse, said in an interview with Bloomberg Television. Pipeline for future listings remains strong and the resurgence in IPO activity will continue, he added.
LG India is set to become the fourth billion-dollar IPO in India this year after HDB Financial Services, Hexaware Technologies and Tata Capital, which is scheduled to begin trading on Oct 13.
The sovereign wealth funds of Abu Dhabi, Norway and Singapore and global money managers including BlackRock and Fidelity International participated in LG India’s anchor share sale before the start of bidding on Tuesday.
“We need supply because money coming via mutual funds is creating demand for new listings,” said Varsha Valecha, senior vice-president of investments at portfolio management firm Chanakya Capital in Mumbai.
LG’s planned Mumbai listing would cap a nearly year-long process since its December filing, which faced delays amid market volatility and global uncertainties. The company has significantly lowered its valuation from the US$15 billion it initially sought.
The offering still values LG India’s shares at 38 times its trailing 12-month earnings, according to Choice Equity Broking analyst Rajnath Yadav.
In comparison, its parent trades at about 14 times, while local peers Havells India and Voltas trade at more than 50 times, data compiled by Bloomberg showed.
Axis Bank, along with the Indian units of Morgan Stanley, JPMorgan Chase, Bank of America and Citigroup, helped arrange the LG share sale. BLOOMBERG
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