LG Electronics IPO Explained: Is LG Set to Break the ₹10,000 Crore IPO Curse?

LG Electronics India Ltd. (LGEIL) is the Indian arm of the global LG brand, the same LG many of us have in our homes, on our TVs, refrigerators, and washing machines. If you’ve used an LG microwave, seen an LG ad for air conditioners, or spotted their showroom in your city, you already know this company.

Now, this market leader is coming to the stock market with a huge ₹11,607 crore IPO, one of the largest in the consumer electronics space, open from October 7 to October 9, 2025. The IPO is fully an Offer for Sale, meaning all the money will go to LG’s Korea-based parent company, not to the Indian subsidiary itself. The price band is ₹1,080–₹1,140 per share, and listing is expected on October 14, 2025.

In this blog, you’re going to get a simple breakdown: what LG Electronics India really does, why they’re listing, where they stand among competitors, the strengths and risks, and what the numbers tell us. By the end, you’ll be able to judge whether this IPO deserves a spot on your watchlist.

IPO Overview

• IPO Date: October 7 to October 9, 2025
• Total Issue Size: ₹11,607.01 crore
• Price Band: ₹1,080 to ₹1,140 per share
• Minimum Investment: ₹14,820
• Lot Size: 13 Shares
• Tentative Allotment Date: October 10, 2025
• Listing Date: October 14, 2025 (Tentative)

LG Electronics Business Model

LG Electronics sells home appliances and electronics we use every day, refrigerators, washing machines, air conditioners, TVs, plus a range of other devices from microwaves to water purifiers. These products are sold through two main divisions:

1. Home Appliance and Air Solution: This includes refrigerators, washing machines, air conditioners, dishwashers, and similar products. This division brings in nearly 75% of the company’s total revenue.
2. Home Entertainment: Primarily TVs, monitors, and display systems.

The sales channels are huge and diverse:

• Retail stores - including 777 exclusive LG BrandShops.
• Partnership with big chains like Reliance Retail, Croma, and Vijay Sales.
• B2B customers - hotels, offices, and institutions needing large orders.

The company also earns from after-sales service, like installation, repairs, and maintenance, which brought in about ₹187 crore last quarter. This is important because service income is stable, even when product sales fluctuate.

The key here is scale. It operates two big manufacturing plants in Noida and Pune, which together produced over 1.45 crore units in FY25. They even make critical components like compressors in-house, this is sometimes called backward integration (making key parts internally instead of buying from suppliers), which keeps costs predictable and quality controlled.

With this model, the LG manages to keep capital efficiency high, with ROCE (Return on Capital Employed) is nearly 43%, compared to an industry average of 17%. That’s like earning ₹43 on every ₹100 invested in the business.

Objectives of the IPO

Since this IPO is 100% Offer for Sale, LG itself won’t get any new funds. All 10.18 crore shares sold will be by the promoter, LG Electronics Inc., which will pocket the ₹11,607 crore.

So why list at all? There are two main reasons:

• Regulatory Requirement: Large companies often list on the exchange to meet governance and transparency standards. It gives Indian investors a chance to own part of the market leader.
• Brand Visibility: Listing on BSE and NSE increases recognition, credibility, and market presence. This can indirectly help the company in negotiations, recruiting, and business expansion.

Strengths:

• Market Leadership in Key Segments: LG is India’s #1 in washing machines (33.5% share), refrigerators (29.9%), panel TVs (27.5%), and inverter ACs (20.6%), based on offline sales value. For example, 1 out of every 3 washing machines sold offline in India is LG’s, showing strong brand trust.
• Wide Distribution Network: 35,640 consumer touchpoints across India, 1.4 times the nearest competitor’s exclusive stores. This reach helps when launching new products faster than rivals.
• High Profitability & Efficiency: ROCE at 42.91% and RoNW at 37.13% are best in class. The EBITDA margin of 12.76% is much higher than the peers’ average (under 10%). More efficiency means more profits from each rupee sold.
• No Debt Risk: Nil borrowings as of June 2025, the company operates without long-term debt, which adds financial safety, especially during economic slowdowns.

Risks:

• Big Tax Claims: Outstanding tax claims of ₹4,717 crore, that’s 73% of its net worth. If LG loses this case, profits could take a hit.
• Heavy Raw Material Dependence: Raw material costs form 74% of revenue. Fluctuations in steel, copper, or aluminum prices could hurt margins.
• Supplier Concentration: Top 5 suppliers handle 22% of total raw materials. Any disruption could affect production lines.
• No Fresh Funds for Growth: Since this is a full OFS, the company won’t have extra money from IPO proceeds for new projects (though it’s already funding a large new Andhra Pradesh plant from internal resources).

For detailed information, visit LG Electronics’ IPO page.

Peer Comparison

LG Electronics’ listed peers include Havells, Voltas, Whirlpool, and Blue Star.

• LG’s P/E ratio at 35.12x is cheaper than peers like Blue Star (65.59x) and Whirlpool (43.53x).
• It has the highest EBITDA margin (12.76%) among listed peers, better than Havells (9.78%).
• Market share in categories like refrigerators and washing machines is higher than the competitors.

Source: RHP, internal calculation

Financial Performance of LG Electronics

LG Electronics India has shown strong growth and improving profits over the last few years. From FY23 to FY25, the company’s sales increased steadily from around ₹19,865 crore to ₹24,367 crore, growing at a compound annual growth rate (CAGR) of about 10.8%. This means the company’s sales are rising consistently each year, driven mainly by strong demand for its home appliances and air conditioning products.

Profit after tax grew even faster from ₹1,348 crore in FY23 to ₹2,203 crore in FY25. This is a 27.8% yearly increase, showing better profitability. The main reasons include improved profit margins and efficient cost management. For example, the company’s EBITDA margin (operating profit as a percentage of sales) rose from 9.54% to 12.76%, and net profit margin increased from 6.69% to 8.95%. Higher margins mean the company keeps more money from every ₹100 it makes in sales.

During FY25, better raw material costs helped boost profitability. On the flip side, the company focused less on capturing low-price volume segments to improve margins rather than market share, which had a small impact on sales growth but increased profits.

Assets like inventory and cash increased in FY25, supporting expanded operations. The company showed good operational health with a capacity utilization of about 84% at its manufacturing plants in Noida and Pune, meaning they are efficiently using their facilities without bottlenecks.

LG IPO Valuation

At ₹1,140 per share, the company’s market cap will be around ₹77,380 crore.

• P/E of 35.12 means investors are paying ₹35 for every ₹1 of profit (FY25) - below the industry average of 56.49.
• For a leader with best-in-class efficiency and scale, that’s relatively attractive.

Disclaimer: The P/E ratio here is calculated using the company’s post-IPO equity and its most recent FY25 net profits at the upper end of the price band.

Who Leads LG Electronics?

LG Electronics India is fully owned by its promoter, LG Electronics Inc., South Korea, which is a global leader in home appliances and electronics with over $30 billion in revenue. It is supported by strong leadership in India, blending deep industry experience and strategic vision:

• Hong Ju Jeon, Managing Director: Joined LG India in 2022 but has been with LG globally since 1994, bringing over 30 years of experience. He leads sales strategies and dealer network strengthening, focusing on expanding premium product sales and operational excellence in India.
• Dongmyung Seo, Chief Financial Officer (CFO): With LG since 1994 and Indian company CFO since 2021, he manages financial operations and reporting, ensuring the company maintains strong financial controls, compliance, and transparency.
• Daehyun Song, Chairman: Associated with LG since 1983, he oversees the board’s governance and communicates with stakeholders. He provides long-term strategic guidance and ensures strong corporate governance.

Their combined expertise gives LG India a steady hand to navigate market challenges and opportunities, leveraging global technology and local market knowledge.

Who’s Making Money from the IPO?

The IPO is a full Offer for Sale with no fresh shares issued, meaning all ₹11,607 crore raised will go to LG Electronics Inc., the Korean parent and promoter, who is selling approximately 10.18 crore shares.

LG Electronics Inc. originally invested at an average price of ₹1.66 per share, so selling at ₹1,080-₹1,140 represents an exceptional return of about 686 times their original investment. This massive gain shows how valuable the Indian subsidiary has become over time.

Because the shares are listed now, the Indian public will get a chance to own part of LG India, while the parent company realises the value of its long-term investment in India.

Industry Outlook

India’s appliances and consumer electronics market is booming. Estimated at ₹6,875 billion (₹6.8 lakh crore) by early 2025, it has grown around 7% per year for the last five years and is expected to speed up to 12-15% annual growth by 2029, driven by a growing middle class and urbanization.

Key growth drivers include:

• Rising incomes and premiumisation: More Indians have money to spend on better, energy-efficient, and feature-rich appliances. This growth is pushing the demand for smart TVs, inverter air conditioners, and eco-friendly refrigerators.
• Smart technology adoption: Over 90% of TVs sold now are smart TVs, indicating tech-savvy consumer behavior that wants convenience and connectivity.
• Government support for local manufacturing: Initiatives like “Make in India” improve production capacities and reduce import dependency, which benefits companies like LG India with domestic plants.
• Expanding markets in smaller cities: Tier 2 and 3 cities and rural areas are increasingly buying consumer electronics, thanks to better awareness and availability.

However, challenges persist:

• Fierce competition from affordable Chinese brands which often compete on price.
• Raw material cost volatility, since commodities like steel form a big part of expenses.
• Fast-changing consumer tastes and tech demand mean companies must continually innovate.

Analyst View

The LG Electronics India IPO presents a strong story - a market leader with deep brand trust, efficient operations, and superior profitability. With a ROCE of 42.91% and a net profit margin of 8.95%, it creates value more efficiently than its peers. Its unmatched distribution network and leadership in key categories like washing machines and refrigerators position it well to benefit from India’s rising consumer demand.

Priced at a P/E of 35.12x, the IPO is also relatively cheaper than listed peers like Whirlpool (43.53x) and Blue Star (65.59x), offering potential value for investors.

But beyond numbers, this IPO is being watched for another reason: it could help break the so-called “₹10,000 crore IPO curse.” In recent years, many large IPOs over this size have underperformed after listing - either falling below the issue price or failing to deliver returns. This has made investors cautious about mega offers.

Now, with strong anchor demand (over ₹4,600 crore), solid financials, and high brand credibility, LG’s listing, along with Tata Capital’s, may signal a turnaround. If it performs well post-listing, it could restore confidence in large Indian IPOs.

That said, risks remain, including ₹4,717 crore in pending tax claims and raw material cost volatility. And since this is a full Offer for Sale, no fresh capital goes to the company for growth.

In short: LG’s IPO is a chance to own a dominant player at a reasonable price, during a moment that could reshape how investors see big IPOs. Watch the listing day performance and early trading trends closely.

Also Read: Tata Capital IPO Explained: One of India’s Biggest Public Listings in 2025

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5. Tap Apply Now and choose the number of lots.
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7. Your funds will be blocked until the share allotment is finalized.

For a seamless application process, visit the INDmoney IPO page.

Disclaimer

Source: LG Electronics' RHP. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Please be informed that merely opening a trading and demat account will not guarantee investment in securities in the IPO. Investors are requested to do their own independent research and due diligence before investing in an IPO. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. This post is for general information and awareness purposes only and is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell, or subscribe for securities. INDstocks is acting as a distributor for non-broking products/services such as IPO, Mutual Fund, and Mutual Fund SIP. These are not exchange-traded products. All disputes with respect to the distribution activity would not have access to the Exchange investor redressal forum or the Arbitration mechanism. INDstocks Private Limited (formerly known as INDmoney Private Limited) does not provide any portfolio management services, nor is it an investment adviser. Logos above are the property of respective trademark owners, and by displaying them, INDstocks has no right, title, or interest in them. SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.