LG Electronics India OFS IPO Closes with 54‑fold Oversubscription, ₹4 Lakh Cr Bids

On October 9, 2025, LG Electronics India Limited wrapped up a three‑day, pure offer‑for‑sale IPO that left the market buzzing. The issue, priced between ₹1,080 and ₹1,140 per share, attracted bids totalling more than ₹4 lakh crore, translating into a jaw‑dropping 54‑times oversubscription. Backed by an anchor round led by Government of Singapore, BlackRock Global Funds and Goldman Sachs, the IPO secured ₹3,475 crore before the regular book opened. Regulators at Securities and Exchange Board of India had cleared the draft prospectus months earlier, and the listing is slated for October 14 on both the Bombay Stock Exchange and the National Stock Exchange.

• Issue size: 10.18 crore equity shares
• Price band: ₹1,080 – ₹1,140 per share
• Gross proceeds targeted: ₹11,607.01 crore
• Anchor raise: ₹3,475 crore from 13 institutional investors
• Final subscription: 54‑times (≈₹4 lakh crore in bids)

Background and IPO Structure

Chennai has been the operational hub for LG’s Indian venture since it set up a manufacturing plant in 2010. The subsidiary, a wholly‑owned arm of South Korea’s LG Electronics Inc., distributes home appliances, consumer electronics and air‑conditioning units across the sub‑continent. Choosing a pure offer‑for‑sale (OFS) route meant that existing shareholders off‑loaded 10.18 crore shares without diluting equity, keeping the pre‑issue holding of 67,87,72,392 shares intact.

Why an offer‑for‑sale?

Investors often see OFS deals as a clean way to re‑balance ownership without injecting fresh capital. For LG, the move let long‑term shareholders monetize a portion of their stake while the company retained full control of its operations. The Securities and Exchange Board of India required that at least 35 percent of the issue go to retail individual investors (RIIs) and no more than 50 percent to qualified institutional buyers (QIBs), ensuring broader market participation.

Anchor Investors and Bookbuilding

The anchor round kicked off on October 7, 2025, with Morgan Stanley India Company Private Limited acting as the sole book‑running lead manager. Their role was to gauge demand, set pricing guidance and allocate shares to the anchor pool. KFin Technologies Limited served as the registrar, handling share issuance and investor communications.

The anchor investors comprised thirteen heavyweight institutions, each committing between ₹150 crore and ₹500 crore. The list featured:

• Government of Singapore
• BlackRock Global Funds
• Goldman Sachs
• Abu Dhabi Investment Authority
• Fidelity Funds
• Government Pension Fund Global (Norway)
• State Bank of India Mutual Fund
• ICICI Prudential Mutual Fund
• HDFC Mutual Fund
• Kotak Mutual Fund
• State Bank of India Life Insurance Company Limited
• ICICI Prudential Life Insurance Company Limited
• HDFC Life Insurance Company Limited

Collectively the anchors took up 26.15 percent of the issue, satisfying the regulatory ceiling for QIBs while leaving ample room for retail and non‑institutional investors.

Subscription Frenzy and Numbers

Moneycontrol’s live‑blog on the final day reported a 5.4‑times subscription—meaning the total demand was 5.4 times the shares on offer. CNBCTV18, however, highlighted a more dramatic 54‑times oversubscription when they compared total bid value (₹4 lakh crore) to the ₹11,607.01 crore issue size, a ratio of roughly 34.4 times if measured in rupees. Both figures underline the intensity of demand, especially from the retail camp, which surged on day two after a tentative start.

Breaking down the numbers:

• Total bids: >₹4 lakh crore
• Issue size in value terms: ₹11,607.01 crore
• Effective subscription ratio: 54‑times (bid‑value) / 5.4‑times (share‑count)
• Retail participation: ≥35 percent of allotted shares
• Non‑institutional participation: ≥15 percent

The anchor round alone raised ₹3,475 crore, confirming strong institutional confidence even before the public book opened.

Market Reaction and Listing Outlook

Throughout the three‑day window, the grey‑market premium (GMP) hovered in the high‑single digits, reflecting optimism but also caution as investors weighed valuation against LG’s earnings outlook. Post‑closure, analysts at Axis Capital projected an opening day price near the top of the band, citing the company’s robust supply chain and growing demand for smart appliances in tier‑2 cities.

The listing scheduled for October 14, 2025, will see the shares start trading on both the Bombay Stock Exchange and the National Stock Exchange under the ticker “LGEL”. Early‑morning opening will likely be a roller‑coaster, with the GMP narrowing as institutional allocations settle.

Implications for Indian Capital Markets

LG’s OFS debut marks the third‑largest IPO in India this year, trailing only HDB Financial Services and Tata Capital. The scale of the bid book—₹4 lakh crore—sets a new benchmark for non‑dilutive listings, suggesting that Indian investors remain eager for blue‑chip exposure without the equity‑dilution concerns that accompany fresh‑issue IPOs.

Furthermore, the successful anchor placement underscores the appetite of sovereign wealth funds and global asset managers for Indian consumer‑goods playbooks. As more multinational subsidiaries look to tap Indian equity markets, we may see a shift toward OFS structures that preserve existing ownership while unlocking liquidity.

Finally, the strong retail participation signals that India’s financial inclusion drives are bearing fruit. With mandatory minimums for RIIs, the regulator’s intent to democratize capital market access appears to be paying off, offering a healthier, more diversified investor base for future offerings.