LG Electronics India Pvt Ltd, the wholly-owned subsidiary of South Korea’s LG Electronics Inc, is set to launch one of 2025’s largest IPOs with an ₹11,600 crore offer for sale (OFS), opening for subscription on October 7, 2025, and closing on October 9. Priced at ₹1,080–1,140 per share, the issue comprises up to 10.18 crore equity shares from the parent, valuing the company at ₹77,800 crore at the upper end—making it India’s third-largest IPO of the year after Tata Capital’s ₹15,500 crore and HDB Financial Services’ ₹12,500 crore. Anchor bidding begins October 6, with listing on BSE and NSE on October 14.
For investors seeking exposure to India’s booming consumer durables market—valued at ₹1.5 lakh crore and growing 10% annually—LG India’s IPO offers a stake in the market leader across air conditioners, refrigerators, and TVs, backed by robust FY25 financials of ₹24,631 crore revenue and ₹2,203 crore PAT. This pure OFS will fund the parent’s global expansion, but unlocks liquidity for India’s premium appliances king. Let’s explore the details, financials, and investment case.
IPO Structure: Pure OFS with Employee Discount and Key Dates
The IPO is a 100% offer for sale by LG Electronics Inc, with no fresh issue—proceeds go to the parent for debt reduction and capex. Eligible employees receive a ₹108 discount on the price band. The minimum lot size is 13 shares (₹14,040 at upper band), with 35% reserved for retail investors.
Key dates and allocation:
| Event/Quota | Details | Notes |
|---|---|---|
| Anchor Bidding | October 6, 2025 | Up to 60% for QIBs |
| Issue Open/Close | October 7–9, 2025 | Book-built; 35% retail |
| Allotment | October 10, 2025 | Refunds by October 11 |
| Listing (BSE/NSE) | October 14, 2025 | GMP at ₹50 (4% premium) as of September 30 |
| QIB/Non-Inst/Retail/Employees | 50%/15%/35%/5% | Discount: ₹108/share |
Book-running lead managers include Axis Capital, Citigroup, Morgan Stanley, JPMorgan, and BofA Securities.
Financial Snapshot: FY25 PAT of ₹2,203 Cr on ₹24,631 Cr Revenue
LG India’s FY25 was stellar, with revenue up 10% to ₹24,631 crore from ₹22,390 crore, driven by 15% volume growth in ACs and TVs. PAT soared 25% to ₹2,203 crore, with EBITDA margins at 12.5% (up from 11.8%). Q1 FY26 revenue hit ₹6,337 crore with ₹513 crore PAT, signaling momentum.
Category dominance (FY25 market share):
- ACs: 29% (inverter: 34%)
- Refrigerators: 23%
- Washing Machines: 25%
- TVs: 18% (panel: 25%)
With 2 manufacturing units, 51 branches, and 30,847 sub-dealers, LG commands a vast network. At upper band, P/E is 35.3x FY25 EPS (vs. peers’ 26.6x), reflecting premium for leadership.
Why the IPO? Parent’s Global Strategy and India’s Appliances Boom
LG Electronics Inc’s OFS will fund Korean capex and debt, while unlocking value from its Indian arm—contributing 10% of group revenue but 20% profits. India’s consumer durables market (₹1.5 lakh crore) grows 10% annually, driven by urbanization and premiumization—LG’s forte.
Strategic fit:
- Expansion: 15% volume growth FY25; targets 30% in premium segments.
- Exports: 10% revenue from 100+ countries; IPO bolsters working capital.
- Peers: Vs. Voltas (P/E 40x), Blue Star (35x)—LG’s scale justifies premium.
Implications: Investor Opportunity in a Premium Play
For investors, the IPO offers entry into a market leader with 29% AC share and 12.5% margins, potentially listing at 5-10% premium (GMP ₹50). Retail Quota: 35% at ₹14,040 minimum—affordable for small investors. Peers: Outperforms Voltas on ROE (20% vs. 15%).
Risks: Parent’s 100% holding dilution to 85%; forex volatility in imports. Upside: 15-20% revenue CAGR to ₹30,000 crore by FY28.
Conclusion: LG India’s ₹11,600 Cr Mega-IPO – Appliances Powerhouse Goes Public
LG Electronics India’s ₹11,600 crore IPO opening October 7 is a marquee listing for consumer durables, valuing the AC/TV leader at ₹77,800 crore with FY25 PAT of ₹2,203 crore. As anchors bid October 6 and shares list October 14, expect strong demand in India’s 10% CAGR market. For long-term investors, it’s a premium play on premiumization. CNBC
