LG Electronics India IPO Analysis: Hidden Facts Behind the $8.7B Valuation
LG Electronics has created a buzz with its much-awaited Indian unit IPO. The company aims for a massive valuation of $8.7 billion (over ₹77,000 crore). The electronics giant plans to raise up to ₹11,607.01 crores by selling 10.18 crore shares through an offer-for-sale structure.
Our team has really looked into LG Electronics’ IPO details and found some key points you should know. The company’s share price band sits between ₹1,080 and ₹1,140 per share. Investors can subscribe to the IPO from October 7 to October 9, 2025. Retail investors need ₹14,820 minimum to buy 13 shares at the upper price. The company’s price-to-earnings ratio ranges from 33.27 to 35.12 times its diluted EPS for FY2025. Many analysts find these levels attractive.
Let’s take a closer look at LG Electronics India’s IPO valuation. We’ll get into its business model and financial performance. Our complete analysis will compare the company with industry peers to help you make a smart investment choice.
IPO Structure and Key Details
LG Electronics India’s IPO stands as one of the biggest public offerings in India’s capital markets for 2025. Here’s a detailed breakdown of its structure and key dates.
IPO size, price band, and offer type
The IPO comprises 10,18,15,859 equity shares with a face value of ₹10 each. This pure Offer for Sale (OFS) structure means LG Electronics Inc. will receive the entire ₹11,607 crore raised, as no fresh capital will be issued. The Indian subsidiary won’t get any funds from this offering.
The price band ranges between ₹1,080 and ₹1,140 per share. LG Electronics India’s post-IPO market capitalization will reach about ₹77,820 crore ($8.7 billion) at the upper end of this range.
Lot size and minimum investment
Retail investors need to buy a minimum lot of 13 shares, which means investing ₹14,820 at the upper price band. They can apply for up to 13 lots (169 shares), which comes to ₹1,92,660. The company will give eligible employees a discount of ₹108 per share.
Retail, QIB, and NII reservation breakdown
The IPO allocation follows this pattern:
- Qualified Institutional Buyers (QIBs): Not more than 50% of the offer
- Non-Institutional Investors (NIIs): Not less than 15% of the offer
- Retail Investors: Not less than 35% of the offer
The company has also set aside up to 2,10,728 shares for eligible employees.
Anchor investor participation and timeline
Anchor investor bidding starts on October 6, 2025, a day before public subscription begins. Here’s the complete schedule:
- IPO Opening: October 7, 2025
- IPO Closing: October 9, 2025 (5 PM cut-off time for UPI mandates)
- Basis of Allotment: October 10, 2025
- Refund Initiation: October 13, 2025
- Credit of Shares to Demat Account: October 13, 2025
- Listing Date: October 14, 2025 on both NSE and BSE
The anchor investor lock-in period ends after 30 days for 50% of the shares (November 9, 2025) and after 90 days for the remaining portion (January 8, 2026).
Business Overview of LG Electronics India
LG Electronics India Ltd, a 26-year old wholly-owned subsidiary of South Korea’s LG Electronics Inc., started operations in January 1997. The brand has grown into one of India’s leading consumer electronics names over the last several years.
Core product segments and services
Two main business segments drive LG Electronics India’s operations. The Home Appliances & Air Solutions division brings in 73.4% of revenue, while Home Entertainment generates 26.6%. Their product lineup includes refrigerators, washing machines, air conditioners, televisions, microwave ovens, water purifiers, and audio-visual equipment. The company’s revenue streams stay steady through installation services, repairs, and yearly maintenance contracts.
Manufacturing and distribution footprint
Two advanced manufacturing facilities in Greater Noida and Ranjangaon (Pune) showcase LG’s production strength. These plants have a combined capacity of 14.51 million units and run at 77% utilization in FY2025. The facilities produce many crucial components like compressors and motors in-house. LG Electronics India plans to invest ₹5,001 crore in a third plant at Sri City, Andhra Pradesh. This facility should start production by November 2026.
Market share and competitive positioning
LG Electronics India leads India’s home appliances and consumer electronics market. The company has held the top spot for four straight years through H1 CY2025. Their market dominance shows in impressive numbers across products. They hold 33.5% in washing machines, 29.9% in refrigerators, 27.5% in panel televisions, and 51.4% in microwaves. These figures come from offline channels, which make up about 78% of India’s consumer electronics market.
Parent company support and brand strength
The global LG brand connection gives great support and recognition. Their parent company helps with technology transfer, R&D capabilities, and global supply chain access. LG’s brand power shows in its ranking among Interbrand’s Top 100 Global Brands in 2024. The company’s strong market position reflects in its selection as the “Most Attractive Brand” in a consumer study across 16 Indian cities.
Financial Performance and Key Metrics
LG Electronics India’s exceptional performance in key metrics makes this IPO an attractive opportunity for investors.
Revenue and profit growth trends
The company’s revenue showed consistent growth from ₹19,865 crore in FY23 to ₹21,352 crore in FY24, marking a healthy 7.5% year-on-year increase. Revenue reached ₹24,367 crore in FY25, which established a solid 10.8% CAGR during this period. The strong performance continues with Q1 FY26 revenue at ₹6,796 crore.
EBITDA, PAT, and net worth analysis
The company’s profitability metrics improved remarkably. EBITDA margins grew from 9.6% in FY23 to 10.4% in FY24, and reached 12.8% in FY25. Profit After Tax rose from ₹1,345 crore in FY23 to ₹1,511 crore in FY24, and jumped to ₹2,203 crore in FY25. This growth represents an impressive 27.8% CAGR.
Return ratios: ROCE and RoNW
LG Electronics leads the industry with outstanding return metrics:
- ROCE grew from 37.43% in FY23 to 45.31% in FY24, reaching 42.91% in FY25
- RoNW increased from 27.35% to 40.45%, settling at 37.13% in FY25
This is a big deal as it means that these figures outperform competitors like Havells (17.7%), Voltas (12.9%), and Whirlpool (9.1%).
Debt-free status and capital efficiency
The company’s most impressive achievement is its zero-debt status, with cash reserves of ₹3,606 crore. LG Electronics’ short working capital cycle of 14.54 days enables excellent free cash flow conversion at 59.49%.
Valuation Breakdown and Peer Comparison
The LG Electronics India IPO’s valuation story makes for a fascinating case study that deserves a closer look.
LG Electronics India IPO valuation vs parent
The company’s market capitalization exceeds ₹77,000 crore (approximately INR 734.11 billion) at the upper price band. This value almost matches its South Korean parent’s INR 750.99 billion valuation. This similarity stands out because LG India’s revenue of INR 236.27 billion in FY25 remains substantially lower than LG Inc.’s INR 5428.19 billion.
Price-to-earnings (P/E) ratio analysis
The company’s P/E ratio reaches 35.12 times at the upper price band based on FY25 earnings. This calculation leads to a post-issue P/E multiple of 35.1x, derived from an EPS of ₹32.46. Industry observers believe this pricing strikes a balance between market sentiment and fundamentals.
Comparison with Whirlpool, IFB, and Samsung
LG’s valuation proves reasonable against domestic competitors. Whirlpool currently trades at 48x P/E, IFB at 59x P/E, and Orient Electric at 49x P/E. This competitive edge positions LG well in India’s consumer electronics market, where it already competes with Whirlpool and Samsung.
Market capitalization and EPS effect
The market capitalization should reach approximately ₹77,380 crore after the IPO. The company expects its post-IPO EPS to touch ₹30.25, a slight decrease from the current ₹32.46. New investors should see minimal dilution effects.
Analyst views on pricing and growth potential
SBI Securities backs the IPO with a ‘Subscribe’ rating. They note that “the company outshines them [peers] in most valuation parameters with superior return profile”. Samco Securities’ analysts also find the issue “attractively priced” and “compelling compared to listed peers”.
Conclusion
LG Electronics India’s IPO stands out as a promising investment backed by market dominance and financial strength. Our analysis shows several reasons why this offering outperforms its peers. The wholly-owned subsidiary of South Korea’s LG Electronics Inc. has managed to keep leadership positions in product categories of all types and delivered steady revenue growth at a 10.8% CAGR over the last two years.
The company’s financial health shines with expanding EBITDA margins, zero debt, and cash reserves of ₹3,606 crore. The 27.8% profit growth CAGR shows LG’s expertise to turn market leadership into strong financial results. The company’s return metrics make an even stronger case – both ROCE and RoNW numbers are substantially higher than competitors like Havells, Voltas, and Whirlpool.
The IPO’s valuation seems reasonable at 35.1x P/E ratio, especially compared to domestic peers that trade at much higher multiples. Notwithstanding that, investors should think over that this pure Offer for Sale structure means proceeds will go to the parent company instead of funding the Indian subsidiary’s growth.
The company’s plans to expand capacity through a third manufacturing facility in Sri City shows management’s confidence in future market needs. This IPO is a chance to invest in a market leader with proven financial discipline, strong brand recognition, and 20-year old manufacturing capabilities. The consumer electronics sector remains competitive, but LG’s long-standing presence and premium positioning are the foundations of sustained performance beyond the IPO.
Frequently Asked Questions
The IPO is worth ₹11,607 crore, consisting entirely of an Offer for Sale (OFS) of 10.18 crore equity shares. No new shares will be issued, so the proceeds will go to the parent company, LG Electronics Inc.
The IPO opens on October 7, 2025, and closes on October 9, 2025. The price band is ₹1,080–₹1,140 per share. Listing on NSE and BSE is scheduled for October 14, 2025.
Retail investors can apply for a minimum of 13 shares (one lot), requiring ₹14,820 at the upper price band. They can apply for up to 13 lots, totaling 169 shares worth ₹1,92,660.
Revenue increased from ₹19,865 crore in FY23 to ₹24,367 crore in FY25 (10.8% CAGR). Profit After Tax rose to ₹2,203 crore, and EBITDA margins expanded to 12.8%. The company is debt-free with ₹3,606 crore in cash reserves.
At a P/E ratio of 35.1x FY25 earnings, LG is priced more reasonably than peers like Whirlpool (48x), IFB (59x), and Orient Electric (49x). Analysts consider the IPO attractively valued given its higher profitability and market dominance.
Since the IPO is a pure OFS, no funds will go to LG Electronics India’s expansion directly. Investors should also consider the competitive nature of the consumer electronics sector and its reliance on consumer demand cycles.
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