LG Electronics India Ltd. has come up with its maiden public offering in India through a ₹11,607.01 crore IPO, which is entirely an Offer for Sale (OFS) by the parent company LG Electronics Inc. This IPO has already generated significant buzz among investors due to the brand’s strong market presence, financial performance, and growth potential in the consumer electronics space. In this IPO review, let us deep dive into the LG Electronics IPO, date, price, size, GMP, analysis, financials, reasons to invest, risk factors, and finally whether you should subscribe or avoid this issue.
About the Company
Incorporated in 1997, LG Electronics India Ltd. is a leading manufacturer and distributor of home appliances and consumer electronics in India. The company operates in three key segments:
- Home Appliances
- Air Solutions
- Home Entertainment
With two large manufacturing units in Noida and Pune, and a robust distribution network comprising 25 warehouses, 23 regional distribution centers, 51 branch offices, 30,847 sub-dealers, and over 1,000 service centers, LG Electronics has built a strong pan-India presence. It also employs around 3,796 people in India. The company’s brand philosophy “Life’s Good When We Do Good” resonates with its long-standing customer loyalty.
Competitive Strengths
- Market Leader in India: #1 market share across key categories like washing machines, refrigerators, air conditioners, and TVs.
- Innovation Edge: First to introduce OLED TVs in India (2015) and one of the first to launch 4K and Smart TVs (2011).
- Distribution & Service Network: Widest offline and after-sales service coverage in India.
- Strong Parentage: Backed by global giant LG Electronics Inc., which is the world’s leading single-brand home appliances player.
- Financial Strength: Strong profitability, zero debt, and high operational efficiency with EBITDA margin of 12.7% and RoNW of 37.1%.
LG Electronics IPO Issue Details
- IPO Date: October 7, 2025 to October 9, 2025
- Listing Date: October 14, 2025 (Tentative)
- IPO Size: ₹11,607.01 crore
- Issue Type: Book Built (Offer for Sale)
- Price Band: ₹1,080 – ₹1,140 per share
- Face Value: ₹10 per share
- Lot Size: 13 shares
- Minimum Investment (Retail): ₹14,820
- Lead Managers: Morgan Stanley India Co. Pvt. Ltd.
- Registrar: KFin Technologies Ltd.
Objects of the IPO
As this is an OFS, the company will not receive any proceeds from the IPO. The objectives are:
- To enable the selling shareholder (LG Electronics Inc.) to divest part of its holding.
- To achieve the benefits of listing, including enhanced visibility and brand value.
Financials of the Company
(₹ in Crores)
| Period | Revenue (₹ Cr) | PAT (₹ Cr) |
|---|---|---|
| FY23 (Mar 2023) | 20,108 | 1,344 |
| FY24 (Mar 2024) | 21,557 | 1,511 |
| FY25 (Mar 2025) | 24,631 | 2,203 |
| Q1 FY26 (Jun 2025) | 6,337 | 513 |
Key Ratios:
- ROCE: 42.9%
- RoNW: 37.1%
- PAT Margin: 8.9%
- EBITDA Margin: 12.7%
- Zero Debt
P/E Ratio and Peer Comparison
At the upper price band of ₹1,140, LG Electronics’ implied P/E ratio works out to ~35x FY25 earnings.
Peer Comparison (FY25 P/E):
- Whirlpool India: 43.5x (Highest)
- Voltas: 52.6x
- Blue Star: 65.6x
- Havells: 64.1x
- Industry Average: ~49x
- LG Electronics (IPO): ~35x (Lowest among peers)
This indicates that LG Electronics IPO is relatively attractively priced compared to peers.
Grey Market Premium (GMP)
As of October 3, 2025, market reports suggest LG Electronics IPO GMP at ₹150–₹180 per share, indicating strong investor interest. This translates into a potential listing gain of around 12%–15%.
Reasons to Invest in LG Electronics IPO
- Strong brand presence and consumer trust built over decades.
- Robust distribution, service network, and after-sales infrastructure.
- Consistent revenue growth with 46% PAT growth in FY25.
- Zero debt balance sheet with high ROCE and RoNW.
- Attractive valuation compared to industry peers.
- Parentage of LG Electronics Inc., a global leader in consumer electronics.
Risk Factors
- Entire IPO is Offer for Sale – no funds go into business expansion.
- Highly competitive sector with strong players like Samsung, Whirlpool, Voltas, and Blue Star.
- Heavy dependence on select raw material suppliers (steel, ABS resin, etc.).
- Technology disruption and rapid consumer preference shifts could impact margins.
- Business performance depends heavily on consumer demand cycles and seasonality.
- Refer LG Electronics IPO RHP/Prospectus on SEBI portal for complete risk factors.
How to Apply for LG Electronics IPO?
- Investors can apply through ASBA (net banking IPO section).
- UPI-based applications available via broker apps like Zerodha, Upstox, Paytm Money, Angel One, ICICI Direct, etc.
- Minimum retail application is 13 shares (₹14,820).
FAQs on LG Electronics IPO
1. What is the LG Electronics IPO date?
IPO opens on October 7, 2025 and closes on October 9, 2025.
2. What is the LG Electronics IPO price band?
₹1,080 – ₹1,140 per share.
3. What is the LG Electronics IPO size?
₹11,607.01 crore (entirely Offer for Sale).
4. What is the LG Electronics IPO GMP today?
Around ₹150–₹180 per share.
5. Should I invest in LG Electronics IPO?
Strong fundamentals, attractive valuations, and strong brand presence make it a good long-term investment.
6. Is LG Electronics IPO good for listing gains?
Yes, GMP trends indicate 12%–15% expected listing gains.
7. Who is the registrar for LG Electronics IPO?
KFin Technologies Ltd.
Conclusion – Invest or Avoid?
The LG Electronics IPO comes from a trusted brand with strong financials, high profitability, zero debt, and attractive valuations compared to industry peers. However, investors should note that this IPO is purely an OFS, meaning no new funds are being infused into the company. Despite this, the combination of robust fundamentals, market leadership, and reasonable pricing makes this IPO a compelling opportunity for both listing gains and long-term investment.
✅ My View: I would be open to invest in such IPOs.
Disclaimer
This article is for educational purposes only and not a recommendation to buy, sell or apply for the IPO. Investors should consult their financial advisor before making any investment decisions.
