The Indian consumer electronics and home appliances market is buzzing with excitement as LG Electronics India Limited (LGEIL), a household name synonymous with quality and innovation, gears up for its Initial Public Offering (IPO). This much-anticipated market event offers investors a unique chance to become a part of a well-established brand with a strong foothold and promising growth trajectory in one of the world's fastest-growing economies.
With a legacy of introducing cutting-edge technology and a vast network, LGEIL stands as a significant player. Let's delve into the details of this upcoming IPO to help you make an informed investment decision.
The Powerhouse Behind the Brand: LG Electronics India
Established in 1997, LG Electronics India has carved a niche for itself as a premier manufacturer and distributor of home appliances and consumer electronics across the nation and beyond. The company prides itself on its innovative product lines and extensive service offerings, including installation, repairs, and maintenance.
Core Business Segments:
- Home Appliances: A wide range of products that enhance daily living.
- Air Solutions: Advanced air conditioning and purification systems.
- Home Entertainment: Leading-edge televisions and audio-visual equipment.
Operational Prowess:
LGEIL boasts a robust operational framework, critical for its market dominance:
- Two state-of-the-art manufacturing units in Noida and Pune.
- A vast supply chain network comprising 2 central and 23 regional distribution centers.
- An extensive after-sales service network with over 1,000 service centers and 13,000+ engineers.
- A dedicated team of nearly 3,800 employees as of mid-2025.
Key Competitive Strengths:
- Market Leadership: A top player in India's home appliances and consumer electronics sectors.
- Innovation Hub: Consistent introduction of technologies tailored for Indian consumers.
- Extensive Reach: Strong pan-India distribution and superior after-sales service.
- Manufacturing Excellence: Efficient operations backed by robust local manufacturing.
- Global Brand Legacy: Leveraging the strength and reputation of its parent company, LG Electronics Inc.
- Capital Efficiency: A business model that demonstrates high growth and profitability.
Deciphering the LG Electronics India IPO Details
The LG Electronics India IPO is structured as a significant opportunity for investors. Here's a breakdown of the essential details:
| Aspect | Information |
|---|---|
| Issue Type | Book Building Issue |
| Total Issue Size | 10,18,15,859 shares (aggregating up to ₹11,607.01 Cr) |
| Sale Type | Entirely an Offer For Sale (OFS) |
| Face Value | ₹10 per share |
| Price Band | ₹1080.00 to ₹1140.00 per share |
| Employee Discount | ₹108.00 per share |
| Listing At | BSE, NSE |
Key Dates to Remember:
Mark your calendars for these crucial dates related to the LG Electronics India IPO:
| Event | Date | Progress |
|---|---|---|
| IPO Opening Date | October 7, 2025 (Tuesday) | |
| IPO Closing Date | October 9, 2025 (Thursday) | |
| Tentative Allotment Finalization | October 10, 2025 (Friday) | |
| Initiation of Refunds | October 13, 2025 (Monday) | |
| Credit of Shares to Demat Account | October 13, 2025 (Monday) | |
| Tentative Listing Date | October 14, 2025 (Tuesday) |
*Note: All dates are tentative and subject to change.
Understanding Your Investment: Lot Size and Reservations
The LG Electronics India IPO offers shares in specific lot sizes, with different reservation quotas for various investor categories:
Investor Category Reservations:
| Investor Category | Shares Offered |
|---|---|
| Qualified Institutional Buyers (QIB) | Not more than 50% of the Offer |
| Retail Individual Investors (RII) | Not less than 35% of the Offer |
| Non-Institutional Investors (NII) | Not less than 15% of the Offer |
Lot Size and Investment Details:
Investors can subscribe for a minimum of 13 shares and in multiples thereof. Here’s a detailed look at the investment slabs:
| Application Category | Lots | Shares | Amount (₹) |
|---|---|---|---|
| Retail Individual Investor (Min) | 1 | 13 | 14,820 |
| Retail Individual Investor (Max) | 13 | 169 | 1,92,660 |
| Small HNI (Min) | 14 | 182 | 2,07,480 |
| Small HNI (Max) | 67 | 871 | 9,92,940 |
| Big HNI (Min) | 68 | 884 | 10,07,760 |
A Glimpse into LGEIL's Financial Health
LG Electronics India has demonstrated consistent financial growth, reflecting its strong market position and operational efficiency. The company's revenue and profitability have seen an upward trend over the recent financial years.
Financial Performance Highlights (Amount in ₹ Crore):
| Particulars | Q1 FY26 (June 30, 2025) | FY25 (Mar 31, 2025) | FY24 (Mar 31, 2024) | FY23 (Mar 31, 2023) |
|---|---|---|---|---|
| Total Assets | 11,516.44 | 11,517.15 | 8,498.44 | 8,992.12 |
| Total Income | 6,337.36 | 24,630.63 | 21,557.12 | 20,108.58 |
| Profit After Tax (PAT) | 513.26 | 2,203.35 | 1,511.07 | 1,344.93 |
| EBITDA | 716.27 | 3,110.12 | 2,224.87 | 1,895.12 |
| Net Worth | 6,447.85 | 5,933.75 | 3,735.82 | 4,319.82 |
| Total Borrowing | 0.00 | 0.00 | 0.00 | 0.00 |
Notably, the company's revenue increased by 14% and profit after tax (PAT) soared by 46% between FY24 and FY25, indicating robust growth. The company maintains a zero-debt position, highlighting its financial prudence.
Valuation Metrics (as of March 31, 2025):
| KPI | Value |
|---|---|
| Return on Capital Employed (ROCE) | 42.91% |
| Return on Net Worth (RoNW) | 37.13% |
| PAT Margin | 8.95% |
| EBITDA Margin | 12.76% |
| Price to Book Value | 13.04 |
Earnings and Valuation at IPO:
| Metric | Pre-IPO | Post-IPO |
|---|---|---|
| Earnings Per Share (EPS) | ₹32.46 | ₹30.25 |
| Price-to-Earnings (P/E) Ratio | 35.12x | 37.69x |
The market capitalization of LG Electronics India IPO is estimated at ₹77,380.05 Cr. While the issue price may appear robust given recent financials, the company's strong brand, consistent growth, and future expansion plans suggest a promising outlook for medium to long-term investors.
Strategic Insights: A SWOT Analysis of LGEIL
To provide a holistic view, let's analyze LG Electronics India's position through a SWOT framework:
Strengths:
- Dominant Market Share: Leading position in key consumer electronics and home appliance categories.
- Strong Brand Recognition: Leveraging the global reputation of LG for quality and trust.
- Robust Distribution & Service Network: Extensive reach across urban and rural India ensures strong customer engagement.
- Innovation-Driven: Continuous investment in R&D to introduce products tailored for the Indian market.
- Sound Financials: Consistent revenue and profit growth with a debt-free balance sheet.
- Strategic Manufacturing: Localized production capabilities enhance operational efficiency and cost control.
Weaknesses:
- Intense Competition: Operating in a highly competitive market with both domestic and international players.
- Reliance on Consumer Spending: Business performance is closely tied to discretionary consumer spending patterns.
Opportunities:
- Growing Indian Market: Rising disposable incomes and urbanization fueling demand for consumer electronics.
- Digital Transformation: Expanding e-commerce penetration and smart home integration.
- Export Hub Potential: Aims to become a global manufacturing hub for LG products.
- Product Diversification: Scope to introduce new product categories or expand into adjacent markets.
Threats:
- Economic Volatility: Fluctuations in economic growth, inflation, and interest rates impacting consumer demand.
- Supply Chain Disruptions: Global supply chain issues affecting raw material availability and costs.
- Regulatory Changes: Evolving government policies and trade regulations.
- Technological Obsolescence: Rapid technological advancements requiring continuous investment to stay competitive.
How to Participate in the LG Electronics India IPO
Participating in the LG Electronics India IPO is a straightforward process. You can apply online using either UPI (Unified Payments Interface) or ASBA (Application Supported by Blocked Amount) as your payment method. Many online brokers facilitate IPO applications directly through their platforms.
Typically, the steps involve logging into your broker's platform (e.g., their console or back office), navigating to the IPO section, selecting the LG Electronics IPO, entering your bid details (UPI ID, quantity, and price), and then approving the mandate on your UPI app.
Key Intermediaries:
- Book Running Lead Managers: A consortium of prominent financial institutions including Morgan Stanley India, JP Morgan India, Axis Capital, BOFA Securities India, and Citigroup Global Markets India.
- Registrar to the Issue: Kfin Technologies Ltd., responsible for managing the IPO process, including application, allotment, and refund.
Promoters and Company Contact
The promoter of LG Electronics India Limited is LG Electronics Inc.
| Aspect | Details |
|---|---|
| Promoter Holding Pre-Issue | 100% |
| Promoter Holding Post-Issue | 85% |
Company and Registrar Contact Information:
For any queries regarding the IPO or the company, you can reach out to:
- LG Electronics India Ltd.
A 24/6, Mohan Cooperative Industrial Estate, Mathura Road, Delhi, New Delhi, 110044
Phone: +91 120 651 6700
Email: cgc.india@lge.com - Registrar: Kfin Technologies Ltd.
Phone: 04067162222, 04079611000
Email: lgelectronics.ipo@kfintech.com