LG Electronics IPO Day 3: While the third and last day of LG Electronics India’s IPO public subscription (October 9, 2025) is underway, the markets’ eagerness is palpable. The reaction until now has been very positive, with a solid grey market premium (GMP) and a good oversubscription pace for all categories of investors. Nevertheless, given risks being highlighted and valuations already at high levels, the last few hours of bidding are likely to be quite hectic.
What is GMP and Why It Matters?
Before going into detail with the figures, let’s briefly explain: GMP (Grey Market Premium) is the difference between the price at which IPO shares are quoted in the grey market (i.e. off‐exchange, informal trades) and the issue price. It indicates investors’ mood and expectations of listing profits.
LG Electronics IPO Day 3: Price Band and IPO Structure Recap
To anchor the discussion:
The IPO is strictly an offer for sale (OFS): The South Korean parent is offloading up to ~10.18 crore shares; no fresh capital is being raised by the Indian entity itself.
Price band is ₹1,080 to ₹1,140 per share.
The minimum lot size is 13 shares.
Quota splits: Toughly 50% QIB, 35% retail, 15% NII (Non-Institutional Investors) (these are typical splits; actual uptake may vary).
Because it’s an OFS, the IPO’s success will not directly boost LG India’s balance sheet. Its valuation depends on relative demand, parent’s willingness to dilute, and growth expectations.
LG Electronics IPO Day 3
On Day 3, the grey market premium (GMP) exhibited a clear upward bias, which is a positive signal that the pessimistic sentiments that had ruled the grey market on Day 2 are now fading. By checking the market live:
During the day, the GMP was even shown at ₹321 above the issue price.
Before that, it was around ₹300.
One live update of the GMP refers to the situation on Day 3 Where the premium is higher than the previous day and the day before i.e. at ₹321 compared to ₹300, is a listing guess of about ₹1461 (i.e.~28% above the upper band) by the market.
The numbers mentioned show that market participants are expecting a strong listing that they will be able to make good use of.
LG Electronics’ Rs 11,607-cr IPO receives 3.32 times subscription on Day 2
Subscription Status on Final Day
The indicators for subscription to the IPO on Day 3 predict an amazing performance of the offering. Among the most important points:
At 3:30 PM, the IPO was oversubscribed ~34.89 times.
Some live updates even suggested the IPO had been oversubscribed nearly 35x by mid-afternoon.
Earlier in the day, at 11:18 AM, figures showed:
- Public issue booked 4.74×
- Retail portion ~2.43×
- NII portion quite strong (exact numbers in report)
According to Mint, by 3:00 PM, the public portion had been booked ~33.74×, retail 3.24×, NII ~21.27×, and QIB soared into 90×+ territory.
Some reports suggest that total subscriptions, by a certain measure, had crossed 50× before closing.
In some news headlines, it is mentioned that the closing subscription was ~5× by the end of the day (possibly indicating a lag in data capture).
LG Electronics IPO Day 3: Risks and Warning Signals to Watch
Though the sentiment is ecstatic, a few red flags and qualifiers should not be forgotten:
- InGovern, a governance advisory firm, marked ₹4,717 crore of disputed tax claims, royalty payments, and related-party issues as potential risk exposures.
- It is possible that earnings could be affected if the negative judgments happen to materialize.
- The Korean parent is anticipated to keep about 85% of the shares post-IPO, which probably means that the minority shareholders’ voting power is limited.
The GMP that denotes around a 25–30% listing gain may already be attributing to the very optimistic growth expectations. The company’s performance might slow down, and the macroeconomic condition could get worse, then there would be little room for the stock to rise further.
Market volatility / sentiment reversal
At times the grey market sentiment can become quite different from the reality very quickly. Retail investors who are bidding near the close of the auction might be at a higher risk of facing non-allotment or getting a lower listing than anticipated.
Operational and competitive risks
Consumer electronics space is a highly competitive market where margins, supply chain cost pressures, and technology shifts (like smart appliances) are some of the difficulties that have not disappeared.
Limited fresh capital in company coffers
The issue is OFS only, which means that LG India doesn’t get the funds to expand. Its development goals will largely rely on the reinvestment of earnings or on getting loans or issuing stocks in the future.
