LG Electronics India is launching its initial public offering (IPO) on October 7, 2025, with the offering closing on October 9, 2025. The IPO aims to raise ₹11,607.01 crore through an offer for sale (OFS) of 10.18 crore shares by its parent company, LG Electronics Inc.. The price band for the IPO is set at ₹1,080 to ₹1,140 per equity share. The listing on BSE and NSE is expected to occur around October 14, 2025.
Valuation and Financial Performance
At the upper end of the price band, LG India's market capitalization is expected to be over ₹77,000 crore (approximately $8.7 billion), closely approaching the valuation of its South Korean parent, LG Electronics Inc., which had a valuation of $8.9 billion at the end of 2024.
LG Electronics India has demonstrated strong financial performance. For the fiscal year ending March 31, 2025, the company's revenue from operations stood at ₹24,367 crore. Net profit for the same period rose by 46% compared to the previous year. The company's PAT margin stood at 8.95%, and the EBITDA margin was approximately 12.75%. However, Q1FY26 saw a slight dip in revenue and PAT due to an early monsoon impacting the summer season.
Strengths and Risks
LG Electronics India possesses several strengths that could attract investors. It is a market leader in the Indian home appliances industry, with a diverse product portfolio including refrigerators, air conditioners, washing machines, and televisions. The company enjoys a strong distribution reach with numerous brand shops and B2C touchpoints across India. Its manufacturing base includes plants in Noida, Uttar Pradesh, and Pune, Maharashtra.
However, there are also potential risks to consider. The IPO is entirely an offer for sale, meaning the proceeds will go to the parent company and not to LG Electronics India. Some analysts have pointed out that the IPO's implied market capitalization makes it one of India's most expensive consumer durables stocks, raising concerns about valuation. Factors such as competition, raw material costs, and consumer demand cycles could also pose challenges.
Market Sentiment and GMP
Ahead of the IPO opening, the grey market premium (GMP) for LG Electronics India shares was around ₹228. Some analysts believe that the IPO is reasonably priced and that investors with a long-term perspective may consider participating. SBI Securities has given the IPO a "Subscribe" rating, signaling confidence in the public offering.
Expert Opinions
Analysts have mixed opinions on the IPO. Some highlight valuation concerns, noting that investors will need to rely on earnings momentum rather than fresh capital deployment. Others point to the company's strong brand recall, market leadership, and plans to expand local manufacturing as positives. One analyst noted that the company appears to be priced more affordably than some local competitors.
Overall
LG Electronics India's IPO is a significant event in the Indian primary market. The company's strong brand, robust financial performance, and market leadership position make it an attractive investment opportunity. However, investors should carefully consider the valuation concerns and the fact that the IPO is entirely an offer for sale. The IPO's success will depend on investor appetite, market conditions, and the company's ability to sustain its growth momentum in the coming years.
