LG Electronics India Ltd (LG India), a wholly owned subsidiary of South Korea’s LG Electronics Inc, is set to open its initial public offering (IPO) for subscription from October 7 to October 9, 2025. The IPO, entirely an offer for sale (OFS) of 10.18 crore shares, is priced in the range of Rs 1,080 to Rs 1,140 per share, amounting to Rs 10,996 crore-Rs 11,607 crore.
There will be no fresh issue component and the company will not receive any proceeds from the sale.
At the upper price band, LG India’s implied market capitalisation (m-cap) stands at around Rs 77,380 crore, while its enterprise value is estimated at Rs 73,714 crore. The issue is being managed by Axis Capital, Citigroup Global Markets India, Morgan Stanley India, JP Morgan India and BofA Securities India, with KFin Technologies serving as registrar. Listing is expected to commence on October 14, 2025.
Founded in 1997, LG India is the country’s leading player in the home appliances and consumer electronics segment (excluding mobile phones), with dominant market shares across key categories including washing machines, refrigerators, panel TVs, inverter air conditioners and microwaves. The company commands a robust offline market presence, accounting for nearly 77 per cent of India’s appliance and electronics retail sales as of June 2025.
According to Choice Broking, which has rated the issue a “Subscribe”, LG India’s valuation — at 38 times trailing twelve-month earnings and 3 times EV/Sales — appears reasonable compared with peers such as Havells, Voltas, Whirlpool and Blue Star. The brokerage highlighted the company’s strong brand, high growth potential and strategic expansion plans as key positives.
The company plans to invest Rs 5,000 crore in a third manufacturing facility in Andhra Pradesh, targeting operations by FY27. The new unit will initially produce air conditioners and compressors, later expanding to washing machines and refrigerators. LG India aims to strengthen its position in premium, AI-enabled and smart home categories, while also expanding its B2B footprint in HVAC systems, LED displays and electronic blackboards.
Financially, LG India reported a revenue CAGR of 13.1 per cent and profit growth of 23.3 per cent between FY22 and FY25, with FY25 profit rising 45.8 per cent year-on-year (YoY) to Rs 2,203 crore. EBITDA margin improved to 12.8 per cent, while return on equity stood at 36.9 per cent. The company also maintains a low debt-to-equity ratio of 0.1, supported by a cash balance of Rs 4,575 crore as of Q1 FY26.
Choice noted that India’s home appliances and consumer electronics market, valued at about Rs 6.9 lakh crore in FY25, is projected to reach nearly Rs 11 lakh crore by 2029, driven by urbanisation, premiumisation and a growing middle class. With its scale, distribution strength and trusted brand, LG India is well positioned to capture this growth, the brokerage said.