LG Electronics India's upcoming Initial Public Offering (IPO) is generating significant buzz in the financial markets, with its valuation nearing that of its South Korean parent company. The IPO, which opens for subscription on October 7 and closes on October 9, 2025, aims to raise ₹11,607 crore through an offer for sale of 10.18 crore shares. The price band is set at ₹1,080 to ₹1,140 per share. The listing on the National Stock Exchange of India is expected to begin on October 14, 2025.
Valuation and Market Capitalization
At the upper end of the price band, LG Electronics India's market capitalization is expected to be over ₹77,000 crore, or $8.7 billion. This valuation is remarkably close to LG Electronics Inc.'s market capitalization of $8.9 billion on the Korean stock exchange. The IPO will give the company a market capitalisation of Rs 77,380.05 crore, making it one of the largest consumer electronics companies to be listed in India.
IPO Details
The IPO consists entirely of an offer for sale of 101,815,859 shares by promoter LG Electronics Inc. There is no fresh issue component, so the company will not receive any IPO proceeds. The minimum investment required for retail investors is ₹14,820 for 13 shares at the upper price band.
The IPO allocation reserves 50% of shares for qualified institutional buyers, 15% for non-institutional investors, and the remaining 35% for retail investors. A total of 2.1 lakh shares are reserved for employees at a discounted rate of ₹108 per share compared to the final issue price.
Financial Performance
Between the financial year ending March 31, 2024, and March 31, 2025, the company reported a 14% increase in revenue and a 46% rise in profit after tax (PAT). For FY24, the company reported a revenue of Rs 21,352 crore, marking an increase from Rs 19,868.24 crore in fiscal 2023. Profit after tax rose 12% to Rs 1,511 during the same period. LG India closed FY25 with a topline of Rs 24,367 crore and bottomline of Rs 2,203 crore, a growth of 14.12% and 12.76% versus last year.
Growth and Expansion Plans
LG Electronics is listing its Indian unit amid a consumer boom in the country. To tap the demand, the company reportedly plans to double its manufacturing capacity in five years and make the country a global manufacturing hub. It is building a $600 million factory, which will start commercial operations by the end of 2026, in Sri City in the southern Indian state of Andhra Pradesh.
The company endeavours to increase the access of premium products to the tier-2, tier-3 towns in India. The company is expanding local sourcing of raw materials and components, accelerating the use of automation and renewable energy such as solar power.
Market Position and Strategy
LG Electronics India has a leading market share in the home appliances and consumer electronics industry in India. The company has the largest distribution network among home appliances and consumer electronics makers in India, with over 35,000 sales points. As of H1 CY2025, the offline channel accounted for 77–78% of India's consumer electronics market, where LG maintains a commanding share.
LG has 27.5% market share in TVs, 29.9% in refrigerators and 33.5% share in washing machines. The company said that its localisation rate was 54%, which was increasing by 3% every year as part of its drive to source from domestic suppliers and push the government's 'Make in India' drive.
Analysts' Views
Analysts find its 35.1x P/E ratio attractive and cheaper than local peers like Whirlpool and IFB. Harsh Thakkar, research analyst at Samco Securities said the issue appears attractively priced, making it compelling compared to listed peers such as Whirlpool (48x P/E), IFB (59x P/E), and Orient Electric Ltd. (49x P/E). SBI Securities has assigned a 'Subscribe' rating due to its superior return profile.
Risks
Key risk factors of the LG Electronics India IPO include: The IPO is a complete Offer for Sale, Intense Competition, Execution Risks, Raw Materials Risks, Market volatility and fluctuations in investor sentiment may affect the IPO's listing performance and post-listing stock price and Royalty payments.
