Diwali, it seems, has come to the IPO markets a bit early in October 2025. After the mammoth IPO dhamaka of Tata Capital, investors are bracing for another ₹11,607.01 crores IPO dhamaka from LG Electronics. The company LG Electronics India Ltd is going public with its IPO from October 7, 2025, to October 9, 2025.
The LG Electronics IPO is going to be 100% Offer for Sale (OFS), wherein its promoter (LG Electronics Inc., Korea) will divest 10.18 crore shares. The allotment is scheduled on Oct 10, 2025, while listing is expected on Oct 14, 2025.
In this blog, we will walk through the key details about the company and the IPO, to help you make an informed decision.
LG Electronics IPO Details
| IPO Name | LG Electronics |
| IPO Open & Close Date | Oct 07 – Oct 09, 2025 |
| Issue Price Band | ₹1080 to ₹1140 per share |
| Lot Size | 13 Shares per lot |
| IPO Type | OFS |
| Allotment Date | Oct 10, 2025 |
| Listing Date | Oct 14, 2025 |
| Retail (Min) Lot Size & Amount | 1 lot & ₹14,820 |
| Retail (Max) Lot Size & Amount | 13 lots & ₹1,92,660 |
| Small HNIs (Min) Lot Size & Amount | 14 lots & ₹2,07,480 |
| Small HNIs (Max) Lot Size & Amount | 67 lots & ₹9,92,940 |
| Big HNIs (Min) Lot Size & Amount | 68 lots & ₹10,07,760 |
| Listing | NSE & BSE |
Objects of the Offer
The IPO is purely an OFS (Offer for Sale); it means the IPO proceeds will not go to the company. The promoter, LG Electronics Inc. (Korea), will offload 101,815,859 equity shares (≈10.18 crore shares) via the IPO.
Industry Overview
- As of H1CY2025 (Annualized), India’s appliances & electronics market stands at ₹ ~6,875 billion (US$ ~81 billion), and as of CY2024 it was ₹ ~6,370 billion (US$ ~75 billion), having grown at a CAGR of ~7% from CY2019 to CY2024. The market is projected to reach ₹ ~10,965 billion (US$ ~129 billion) by CY2029P, growing at an accelerated 5-year CAGR of ~11%.
- The Consumer Electronics (“CE”) market in India accounts for ~75% of the overall appliances & electronics (B2C) market and is projected to reach ₹ ~7,220 billion (US$ ~84.9 billion) by CY2029, growing at a 5-year CAGR of ~10%.
- Penetration of Key Appliances: India vs Global Benchmarks (H1CY2025 (Annualized), %)
| Country | Refrigerators | Washing Machines | TVs | Microwaves |
|---|---|---|---|---|
| India | ~35% | ~22% | ~78% | ~4% |
| United States | >80% | >80% | >95% | >80% |
| China | 99% | >70% | >85% | >20% |
About LG Electronics
LG Electronics India (LGEIL) is the Indian arm of LG’s global operations in electronics and appliances (excluding mobile phones).
Business Segments & Products
- The company sells Home Appliances & Air Solutions (refrigerators, washing machines, air conditioners, water purifiers) and Home Entertainment / Consumer Electronics (TVs, displays, audio).
- In recent years, the appliances & air solutions division has contributed ~75%+ of revenue.
Manufacturing, Distribution & Reach
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It operates two plants, one in Noida and another in Pune.
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A third plant in Sri City, Andhra Pradesh, is under development (investment ~US$600 million).
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It has a vast distribution network, with tens of thousands of retail touchpoints and service centers.
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Being backed by the global LG group, the Indian entity benefits from technology, design, brand, and supply chain synergies.
Financials
| Metric | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Total Income / Revenue | 20,108.58 | 21,557.12 | 24,630.63 |
| EBITDA | 1,895.12 | 2,224.87 | 3,110.12 |
| PAT (Profit After Tax) | 1,344.93 | 1,511.07 | 2,203.35 |
| Total Assets | 8,992.12 | 8,498.44 | 11,517.15 |
| Net Worth | 4,319.82 | 3,735.82 | 5,933.75 |
| Reserves & Surplus | 4,243.12 | 3,659.12 | 5,291.40 |
Note: The above numbers are in crores
Peer Comparison (Financials FY 2024)
| Metrics | LG Electronics India Ltd. | Samsung India Electronics Pvt. Ltd. | Havells India Ltd. | Godrej & Boyce Mfg. Co. Ltd. | Voltas Ltd. | Blue Star Ltd. | Sony India Pvt. Ltd. | Whirlpool of India Ltd. | Haier Appliances (India) Pvt. Ltd. | Philips India Ltd. |
|---|---|---|---|---|---|---|---|---|---|---|
| Timelines | FY2024 | FY2024 | FY2024 | FY2024 | FY2024 | FY2024 | FY2024 | FY2024 | CY2023 | FY2024 |
| Revenue from Operations (₹ Mn) | 2,13,520 | 9,95,416 | 1,85,900 | 1,63,787 | 1,24,812 | 96,854 | 76,637 | 68,298 | 63,055 | 60,004 |
| Revenue Growth YoY (%) | 7.47% | 3.01% | 9.93% | 10.69% | 31.40% | 21.41% | 20.62% | 2.43% | 16.15% | 4.65% |
| Gross Margin (₹ Mn) | 64,218 | 2,46,387 | 60,213 | 78,832 | 26,672 | 22,934 | 12,789 | 22,541 | 19,128 | 35,382 |
| Gross Margin (%) | 30.08% | 24.75% | 32.39% | 48.13% | 21.37% | 23.68% | 16.69% | 33.00% | 30.33% | 58.97% |
| EBITDA (₹ Mn) | 22,249 | 92,746 | 18,426 | 13,391 | 3,360 | 6,654 | 1,891 | 3,841 | 3,575 | 4,474 |
| EBITDA Margin (%) | 10.42% | 9.32% | 9.91% | 8.18% | 2.69% | 6.87% | 2.47% | 5.62% | 5.67% | 7.46% |
| PAT (₹ Mn) | 15,111 | 81,887 | 12,708 | 5,459 | 2,481 | 4,143 | 1,670 | 2,243 | 1,556 | 2,575 |
| PAT Margin (%) | 7.01% | 7.98% | 6.75% | 3.30% | 1.95% | 4.26% | 2.16% | 3.21% | 2.45% | 4.25% |
| EBIT / Operating Profit (₹ Mn) | 18,605 | 81,267 | 15,041 | 8,344 | 2,884 | 5,678 | 1,662 | 1,738 | 1,855 | 3,048 |
| Capital Employed (₹ Mn) | 41,058 | 3,18,668 | 77,499 | 1,91,147 | 65,978 | 28,556 | 8,283 | 40,744 | 24,197 | 18,903 |
| Shareholders’ Equity (₹ Mn) | 37,358 | 3,11,931 | 74,468 | 1,50,831 | 58,542 | 26,126 | 7,720 | 38,435 | 21,038 | 14,896 |
| ROCE (%) | 45.31% | 25.50% | 19.41% | 4.37% | 4.37% | 19.88% | 20.07% | 4.26% | 7.67% | 16.12% |
| RONW (%) | 40.45% | 26.25% | 17.06% | 3.62% | 4.24% | 15.86% | 21.63% | 5.84% | 7.39% | 17.29% |
| Working Capital Days | 15.95 | 12.05 | 46.89 | 57.20 | 10.23 | 9.51 | -10.03 | 9.62 | 42.97 | 63.11 |
| FCF Conversion Ratio (%) | 59.49% | 77.45% | 59.83% | 3.15% | 123.95% | -19.16% | 13.34% | 95.18% | 113.64% | 29.28% |
Positives
Strong parentage & brand backing
The global LG brand, its reputation, product design, and IP provide its Indian company an edge.
Scale & Diversified Offerings
It competes across multiple products, which include refrigerators, washing machines, TVs, microwaves, air conditioners, etc.
Wide Distribution + After-sales Network
The company has a wide distribution and after-sales service network across India.
Good margins and returns
Solid EBITDA, PAT, and returns reflect operational efficiency.
Room to expand
The upcoming third plant in Andhra Pradesh could scale up capacity.
Reasonable valuation
The IPO seems to be reasonably priced.
Risks & Challenges
Royalty / IP dependency on parent
The licensing agreement with LG Korea is crucial. If terms of the agreement change or are terminated, it could hurt margins and product support.
High dependence on major product lines
Appliances & air solutions contribute most revenue. Weaknesses in those categories could majorly impact the revenue.
Supplier risk & input cost volatility
A few suppliers contribute major raw material inputs. Any disruption or price surge (steel, electronics components) can squeeze margins.
Competitive pressure
The sector is crowded. Brands compete on pricing, features, and service. The pressure on marhin is real.
Economic Slowdown
A slowdown in the economy or inflationary pressure might adversely impact demand.
No fresh capital infusion
Since the IPO is purely an OFS, the company doesn’t get any funds to fuel growth. Future needs might require debt or dilution.
LG Electronics IPO -Should You Invest?
If you are an investor with moderate risk tolerance and a time horizon of 1 to 3 years, the IPO is worth considering for investment. Don’t commit a large portion of holdings; treat it as a meaningful but non-core holding instead. For short-term traders, the listing window might offer gains, but do consider the volatility risk.
Happy IPO Investing!
*Disclaimer: This blog is for informational purposes only and does not constitute investment advice. Investors should consult their financial advisor before investing. Read the RHP for more details.
About the Author
Sandip Desai is a stock market professional with over 18 years of experience in the Indian broking and investment space. He holds NISM certifications in Equity Derivatives, Currency Derivatives, Commodity Derivatives, and Mutual Fund Distribution. Sandip is passionate about simplifying financial concepts and helping investors navigate IPOs and capital markets with confidence.