LG Electronics India Makes Strong Debut on Indian Bourses
LG Electronics India made its highly anticipated debut on the Indian stock exchanges today, marking one of the biggest consumer electronics listings of the year. The LG India share price opened with optimism as investors reacted positively to strong fundamentals and future growth projections.
According to Motilal Oswal, which initiated coverage on the day of listing, the brokerage has assigned a “Buy” rating on LG Electronics shares, setting a target price of ₹1,800 per share — representing a potential upside of 58% from the IPO price of ₹1,140 per share.
In its bull case scenario, Motilal Oswal projects that LG India share price could climb as high as ₹2,085, indicating a potential upside of 83% from the issue price.
LG Electronics IPO: Massive Response from Investors
The LG Electronics IPO has set a new record in India’s primary market, attracting bids worth ₹4.5 lakh crore, surpassing the previous benchmark held by Bajaj Finance. This unprecedented response highlights investors’ strong confidence in the company’s growth prospects and brand leadership in India’s fast-expanding consumer durables sector.
Analysts note that the strong demand positions LG Electronics among the most successful IPOs in Indian stock market history. The LG IPO listing time saw active participation across all investor categories, including QIBs, HNIs, and retail investors.
Growth Outlook: India’s Consumer Market Boom
The Indian home appliances and consumer electronics market is expected to grow at a 14% CAGR between 2024 and 2029, providing a major tailwind for LG Electronics India. The company’s dominance across product categories like televisions, refrigerators, washing machines, and air conditioners makes it well-positioned to benefit from this sectoral expansion.
Motilal Oswal’s analysis suggests that LG will continue trading at higher valuation multiples due to its strong Return on Equity (RoE) of 30% and Return on Invested Capital (RoIC) of 66% expected by FY28.
Competitive Strengths and Strategy
One of LG India’s major advantages lies in its extensive distribution and after-sales network, boasting over 1,000 service centers across the country. The company is also focusing on localization, B2B solutions, and annual maintenance contract (AMC) services — areas expected to drive high-margin growth in the coming years.
Advertising will remain a key part of LG’s growth strategy, with 4.5% of topline revenue earmarked for promotional activities until FY28, ensuring brand dominance in an increasingly competitive market.
Risks and Market Challenges
While the growth outlook is strong, Motilal Oswal has flagged several downside risks — including a potential increase in royalty fees to LG Electronics Korea, volatile raw material prices, and rising competition in India’s premium appliance segment.
Despite these risks, analysts remain bullish about LG’s long-term prospects, citing robust financials, brand loyalty, and operational efficiency.
Investor Sentiment and Future Prospects
The LG Electronics share price in India is expected to witness sustained momentum in the near term, backed by high demand and strong institutional support. Market analysts expect the LG IPO listing price to provide a stable entry point for long-term investors seeking exposure to the booming consumer electronics space.
With the LG listing price already reflecting investor enthusiasm, the company’s ability to maintain profitability and manage costs will determine future stock performance.
Final Takeaway
The LG Electronics IPO listing marks a significant milestone for the Indian equity market and the consumer electronics sector. With strong fundamentals, record-breaking investor interest, and bullish projections from leading brokerages, LG Electronics India could emerge as one of 2025’s top-performing IPOs.
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