LG Electronics India Ltd is launching its Initial Public Offering (IPO) through a complete offer-for-sale. The IPO comprises an offer for sale of 10.18 crore shares worth Rs. 11,607.01 crore.
LG Electronics India Ltd IPO opens on October 7, 2025, and closes on October 9, 2025, with shares set to be listed on NSE and BSE on Tuesday October 14, 2025. Here’s a complete overview of the issue.
LG Electronics India Ltd’s IPO is priced between Rs. 1,080 and Rs. 1,140 per share with a lot size of 13 shares. Retail investment is Rs. 14,820 (13 shares at the upper price). For S-HNI, the investment is 14 lots (182 shares) totaling Rs. 2,07,480, and for B-HNI, a minimum of 68 lots (884 shares) totaling Rs. 10,07,760.
GMP of LG Electronics India Ltd IPO
As of October 7, 2025, the shares of LG Electronics India Ltd in the grey market were trading at a 27.89 percent premium. The shares in the Grey Market traded at Rs. 1,458. This gives it a premium of Rs. 318 per share over the cap price of Rs. 1,140.
Overview of LG Electronics India Limited
Incorporated in 1997, LG Electronics India Limited manufactures and distributes home appliances and consumer electronics (excluding mobile phones) for both B2C and B2B customers in India and abroad.
The company also provides installation, repair, and maintenance services for its products, operating across three main business segments: Home Appliances, Air Solutions, and Home Entertainment.
LG Electronics India Limited operates two advanced manufacturing facilities in Noida and Pune, which account for approximately 97–98 percent of its product output. The company has a robust pan-India supply chain network, comprising 25 warehouses, including two central distribution centers and 23 regional distribution centers, supported by 30,349 sub-dealers and over 35,640 B2C touchpoints as of Q1FY26.
The company also provides extensive after-sales support through more than 1,000 service centers across urban and rural India, aided by 13,368 service engineers and four call centers. LG Electronics India employs a dedicated team of around 3,796 people and operates under the brand philosophy: “Life’s Good When We Do Good.”
LG Electronics India Ltd Selling Shareholders
The LG Electronics India Ltd IPO features a significant Offer for Sale, with promoter LG Electronics Inc. selling 10.18 crore equity shares.
Lead Managers of LG Electronics India Ltd
Axis Capital Limited, Citigroup Global Markets India Private Limited, Morgan Stanley India Company Private Limited, J.P. Morgan India Private Limited and BofA Securities India Limited are the book-running lead managers for the IPO. Kfin Technologies Limited is the registrar handling the offer process.
Objectives of the IPO Offer
There is no objective for this IPO as it has no proceeds for the company, as the entire amount from the sale will go to the selling shareholder.
Financial Analysis of LG Electronics India Ltd
LG Electronics India Limited’s revenue from operations has increased from Rs. 21,352 crore in FY24 to Rs. 24,366.64 crore in FY25, which represents a growth of 14.12 percent. The net profit has increased by 45.81 percent, from Rs. 1,511.07 crore in FY24 to Rs. 2,203.35 crore in FY25.
The basic earnings per share increased by 45.82 percent and stood at Rs. 32.46 in FY25 as against Rs. 22.26 recorded in FY24. In terms of return ratios, the company reports a Return on Capital Employed (ROCE) of 42.91 percent and a Return on Net Worth (RoNW) of 37.13 percent.
LG Electronics India Limited Vs Peers
LG Electronics India Limited reported an EPS of Rs. 32.46 and a RoNW of 37.13 percent. In comparison, Havells Limited’s EPS of Rs. 23.49 and its RoNW of 17.63 percent. Voltas Limited reported Rs. 25.43 EPS, and a RoNW of 12.76 percent. LG Electronics India Limited’s net asset value per share is Rs. 87.42, compared to Rs. 314.52 for Whirlpool Limited and Rs. 149.19 for Blue star Limited.
Strengths of LG Electronics India Limited
- The company is a market leader in India’s home appliances and consumer electronics industry, holding the #1 position across major product categories.
- The company develops and introduces innovative technologies designed specifically for Indian consumers.
- The company enhances consumer experience through a nationwide distribution and after-sales service network.
- The company drives operational efficiency with robust manufacturing capabilities and a localized supply chain.
- The company operates a capital-efficient business model delivering strong growth and high profitability.
Weaknesses of LG Electronics India Limited
- The company relies on its promoter, LG Electronics, for various aspects of its business and pays royalties under a License Agreement; any adverse change in this relationship could negatively affect its business, reputation, financial condition, and operational results.
- The company may face regulatory scrutiny over royalty payments made to its promoter under the License Agreement, with a current contingent liability of Rs. 3,153 million. Future observations by tax authorities could arise, potentially adversely impacting the company’s operational results.
- The promoter might run a similar business in India, which could create conflicts of interest. Hi-M Solutek, a promoter-owned company, works with the company but there’s no exclusive agreement. Also, the company’s directors and managers could have personal interests beyond their salaries.
- Rising raw material prices could negatively impact the company’s business and financial results.
- The company has contingent liabilities that, if realized, could negatively impact its financial condition.
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Conclusion
LG Electronics India Limited is a top player in India’s home appliances and electronics market with strong growth, profitability, and a wide distribution network. It focuses on innovative products and efficient operations, but relies on its promoter and faces royalty, conflict, and raw material risks.
Overall, it has good growth potential with some risks to consider. The IPO presents strong long-term growth potential, but investors should carefully consider the associated risks before investing.
Written By Akshay Sanghavi
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