| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹1080 to ₹1140 | 13 | 07th Oct, 2025 –09th Oct, 2025 | ₹11,607.01 Cr |
LG Electronics India Ltd
LG Electronics India Ltd. (LGEIL) is a leading player in the home appliances and consumer electronics industry in India, with #1 market share across key product categories including washing machines, refrigerators, panel televisions, inverter air conditioners, and microwaves, based on market share (in terms of value) in the offline channel. The company was the first leading home appliances and consumer electronics player to introduce OLED televisions in India in 2015, and was amongst the first players to launch 4K televisions and smart televisions in 2011. The company has an expansive sales network through 35,640 B2C touch points comprising LG Brand Shops that are strategically located in main shopping areas of the cities and towns, modern trade stores such as Reliance Retail, Croma (Infiniti Retail), and Vijay Sales, online touch points, traditional stores, distributors, and sub-dealers. As of June 30, 2025, the company had one of the largest in-house production capacities (excluding mobile phones) amongst leading home appliances and consumer electronics players in India. They have two manufacturing units located in Noida and Pune, which collectively accounted for 85.5%, 84.2%, 86.1%, 85.7% and 85.3% of its overall sales in three months ended June 30, 2025, and 2024, and Fiscal years 2025, 2024, and 2023, respectively. They have an extensive supplier network comprising 287 suppliers who have been with them for an average of 13.1 years as of June 30, 2025
Objective of the LG Electronics India Ltd IPO
The company will not receive any proceeds from the Offer.
Rationale To LG Electronics India Ltd IPO
Market leader in India’s home appliances and consumer electronics sector across key product categories
The company stands as a market leader in India’s home appliances and consumer electronics industry, holding the number one position across key product categories such as washing machines, refrigerators, panel televisions, inverter air conditioners, and microwaves in the offline retail channel. It has maintained this leadership consistently for the six months ended June 30, 2025, as well as for calendar years 2024, 2023, and 2022, as per market share data (in terms of value) reported by Redseer. The company offers one of the most comprehensive and technologically advanced product portfolios in the Indian consumer durables market. Its television lineup, for instance, spans across multiple high-end technologies including Organic Light-emitting Diode (OLED), Quantum Nano-Emitting Diode (QNED), NanoCell (technology that uses nanoparticles to display rich images), Ultra High Definition (UHD), and Light Emitting Diode (LED) models, giving it a clear edge over competitors who typically offer fewer product types. Similarly, in the home appliance category, the company’s diversified offerings cater to varied consumer preferences and usage patterns across income segments and geographies. With over 28 years of operations in India, the company has built a strong reputation for product quality, reliability, and service excellence. Its extensive service network and commitment to after-sales support have further reinforced consumer trust and loyalty. The company’s deep understanding of consumer needs has allowed it to maintain a balanced and inclusive product strategy offering cutting-edge, feature-rich appliances for premium customers, while simultaneously introducing durable, affordable models designed for mass-market consumers who prioritise value and functionality. Overall, the company’s sustained market leadership, wide and technologically superior product range, robust brand equity, and strong distribution and service network collectively strengthen its competitive position.
Driving operational excellence through robust manufacturing and localised supply chain
The company has strong operational efficiency through its robust manufacturing capabilities and a well-integrated, localised supply chain. As of June 30, 2025, it possessed one of the largest in-house production capacities (excluding mobile phones) among India’s leading home appliances and consumer electronics players. By manufacturing key components internally, the company maintains greater control over product development, quality, costs, and delivery timelines. Its manufacturing units are designed for flexibility and employ advanced automation technologies, enabling efficient production of a diverse product range at scale while allowing for quick adjustments in production levels based on projected demand. In FY25, capacity utilisation at its Noida manufacturing unit reached to about 82.7% on a double-shift basis, reflecting effective use of resources. The company’s supply chain is supported by a network of 287 suppliers with an average association of approximately 13 years, highlighting strong supplier relationships and significant supplier stickiness, with 65.5% of third-party raw material suppliers serving the company for over a decade. The company has progressively increased sourcing from domestic suppliers, rising from 50.5% in FY23 to 53.8% in FY25, reflecting a strategic focus on local procurement. Its distribution network, comprising two central distribution centres (CDCs) and 23 regional distribution centres (RDCs) across India, is further strengthened by technology-enabled systems such as the Warehouse Management System (WMS) and Transport Management System (TMS), which provide real-time updates on deliveries and optimise transport routes. These capabilities collectively enhance operational efficiency, reduce lead times, and support the company’s ability to meet growing consumer demand, positioning it strongly for sustainable growth.
Valuation of LG Electronics India Ltd IPO
LG Electronics India Ltd. is a market leader in India’s home appliances and consumer electronics industry, commanding #1 market share across key product categories, including washing machines, refrigerators, panel televisions, inverter air conditioners, and microwaves in the offline channel. The company’s leadership is underpinned by a broad and technologically advanced product portfolio, a strong brand presence, and one of the largest distribution networks among its peers, with 35,640 B2C touch points spanning urban and rural India as of June 30, 2025. The company’s pan-India presence across multiple distribution formats enhances its reach to consumers, enabling it to maintain sustained market dominance and a strong connection with end customers. To capitalise on market opportunities and further strengthen its competitive position, LGEIL is pursuing a multi-pronged growth strategy. The company plans to construct a third manufacturing facility in Andhra Pradesh to expand production capacity and address anticipated growth in consumer demand. Existing manufacturing capabilities are set to be enhanced through additional automation technologies, improving efficiency and flexibility. LGEIL also aims to optimise its supply chain by increasing locally sourced raw materials, thereby reducing costs and strengthening operational resilience. On the B2B front, the company plans to deepen its presence and introduce additional revenue streams, targeting a CAGR of ~14% from CY24 to CY29. The B2B expansion includes products such as HVAC systems, commercial information displays, commercial washing machines, LED displays, and electronic blackboards, catering to the growing institutional demand. On the financial front, the company has delivered healthy CAGR growth over FY23–25, with Revenue/EBITDA/PAT CAGR of 10.8%/28.0%/ 27.9%. The company has consistently demonstrated superior profitability and return ratios relative to industry peers, reflecting the effectiveness of its business model. With strong operational metrics, an expanding product portfolio, and strategic initiatives aimed at both B2C and B2B segments, LGEIL is well-positioned to sustain growth, strengthen profitability, and create long-term growth in India’s dynamic home appliances and consumer electronics market. At the upper price band of Rs 247, the company is valued at a P/E multiple of 35.1x FY25 earnings. We, thus, recommend a “SUBSCRIBE” rating for this issue.
What is the LG Electronics India Ltd IPO?
The initial public offer (IPO) of LG Electronics India Ltd offers an early investment opportunity in LG Electronics India Ltd . A stock market investor can buy LG Electronics India Ltd IPO shares by applying in IPO before All LG Electronics India Ltd shares get listed at the stock exchanges. An investor could invest inLG Electronics India IPO for short term listing gain or a long term.
How to apply for the LG Electronics India Ltd IPO through StoxBox?
To apply for the LG Electronics India Ltd IPO through StoxBox one can apply from the website and also from the app. Click here
When will the LG Electronics India Ltd IPO open?
LG Electronics India Ltd IPO is opening on 07th Oct 2025. Apply Now
What is the lot size of the LG Electronics India Ltd IPO?
The Lot Size of LG Electronics India Ltd IPO is 13 equity shares. Login to your account now.
When is the LG Electronics India Ltd allotment date?
The allotment Date for LG Electronics India Ltd IPO is 10th Oct 2025. Login to your account now.
When is the LG Electronics India Ltd IPO listing date?
The listing Date for LG Electronics India Ltd IPO is 14th Oct 2025. Login to your account now
What is the minimum investment required for the LG Electronics India Ltd IPO?
In the Retail segment the minimum investment required is Rs. 14,820. Login to your account now
What is the maximum investment allowed for the LG Electronics India Ltd IPO?
In the Retail segment the maximum investment requirement is Rs. 1,92,660. Login to your account now
What are the risks associated with investing in the LG Electronics India Ltd IPO?
The company is significantly dependent on LG Electronics, its promoter, for various aspects of its operations and pays royalties under the existing License Agreement. Any adverse changes in relationship with LG Electronics or other companies within the LG Group could materially impact the company’s business operations, reputation, financial condition, and overall results.
The royalty payments made to the promoter under the License Agreement may attract regulatory scrutiny or action. As of the date of this Red Herring Prospectus, the company has a contingent liability of Rs. 3,153.00 million relating to these royalty payments. There is no assurance that similar observations will not be raised by tax authorities in future periods, and any such actions could adversely affect the company’s financial condition and results of operations.
Rising prices of raw materials essential for the company’s operations could increase production costs and negatively impact profitability, thereby adversely affecting the company’s business performance and results of operations.
When will the LG Electronics India Ltd IPO shares be credited to my Demat account?
The TATA Capital Ltd IPO be credited to the account on allotment date which is 13th Oct 2025. Login to your account now
Where can I find the LG Electronics India Ltd IPO prospectus?
The prospectus of LG Electronics India Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE
