IPO listed on 14 Oct'25
LG Electronics India Ltd
Minimum Investment
₹ 14,820 / 13 shares
Issue price
₹ 1140
Listing price
₹ 1,710
Listing gains
570.1 (50%)
Listing on
Oct 14, 2025
Our Verdict:
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- LG Electronics India Ltd (LGEIL) is one of India’s most trusted consumer durable brands, backed by a strong global parent, solid fundamentals and an unmatched distribution network. The company has established market leadership and offers strong growth visibility through a proven operating model.
- LGEIL’s profitability metrics are particularly impressive, with EBITDA and net profit margins showing steady improvement, reflecting operational efficiency and scalable growth.
- Capital efficiency is another strong suit, with Return on Capital Employed (ROCE) exceeding 40%, which highlights the firm’s ability to maximize productivity from its capital base, all while maintaining a debt-free balance sheet—an uncommon strength in a capital-intensive sector.
- On the valuation front, the IPO is priced at a P/E multiple of around 35x FY25 earnings, which appears reasonable relative to peers that trade at higher multiples despite weaker margins and return ratios.
- Competition in the Indian appliances market remains intense with players like Havells, Voltas, Whirlpool and Samsung, but LGEIL’s scale, brand trust and superior service network provide a strong moat.
- Given these strengths, we recommend subscribing to the IPO with a long-term perspective.
About the company
Founded in
20 Jan'97
Managing director
Hong Ju Jeon
- LGEIL operates a multi-segment, multi-channel business model that integrates product sales, services and B2B offerings into a unified ecosystem. Revenue comes from two key divisions: Home Appliances & Air Solutions (the largest contributor) and Home Entertainment (televisions, monitors and audiovisual products). The company also generates steady income from installation, repairs and annual maintenance contracts (AMCs).
- With one of the largest production capacities in the country, LGEIL’s Noida and Pune facilities have a combined installed capacity of 14.51 million units for FY25, with a utilization rate of nearly 77%. The company has invested ~Rs 5,000 crore in building a third plant in Andhra Pradesh, expected to begin operations by FY27, focusing on air conditioners and compressors.
STRENGTHS
- Market Leader: LGEIL holds the #1 market share in key product categories within India’s home appliances and consumer electronics industry. As of June 30, 2025, it has maintained its position as the market leader for both the last six months and the past four years, based on market share (in value) in the offline channel.
- Largest Distribution Network: As of June 30, 2025, LGEIL operates the largest distribution network in India’s home appliances and consumer electronics sector. Its extensive sales network includes 35,640 B2C touchpoints, comprising LG BrandShops, modern trade stores (such as Reliance Retail, Croma and Vijay Sales), online platforms, traditional stores, distributors and sub-dealers.
- Impressive Financial Growth: Between FY23 and FY25, LGEIL achieved substantial growth, with operating revenue increasing at an 11% CAGR. Both EBITDA and net profit surged by 28% during this period.
- Capital Efficiency: LGEIL delivered an outstanding Return on Capital Employed (ROCE) of 45% in FY24, the highest among its peers in the home appliances and consumer electronics sector, where the average ROCE is approximately 17%. FY25 ROCE was slightly lower at 43%. Additionally, its net working capital cycle stood at just 15.95 days in FY24, significantly outperforming the industry average of around 26 days.
- Superior Profitability: LGEIL boasts one of the best-in-class profitability, with an EBITDA margin of 10.42% and a net profit margin of 7.01% in FY24, compared to industry averages of less than 7% and 4.5%, respectively. These margins improved further in FY25, reaching 12.76% and 8.95%.
- Long-Standing Supplier Relationships: LGEIL has cultivated strong, long-term relationships with 287 suppliers, with an average partnership duration of 13.13 years, as of June 30, 2025.
RISK FACTORS
- Seasonality & Demand Cycles: Sales of consumer durables in India, particularly air conditioners and refrigerators, exhibit seasonal peaks during the summer months. This leads to potential revenue fluctuations. However, LGEIL's diverse product portfolio, ranging from TVs to washing machines to microwaves, helps ensure balanced cash flows throughout the year.
- Raw Material & Supply Chain Dependence: Raw materials accounted for nearly 75% of LGEIL’s FY25 revenue, with 46% of these sourced through imports. Global volatility in commodity prices can affect margins. To mitigate this, the company has increased local sourcing to 54% in FY25, up from ~49% in FY24
- Execution of New Plant: The planned Rs 5,000 crore investment in a new manufacturing facility in Andhra Pradesh is a major commitment. Any delays or inefficiencies in execution could affect production capacity and financial performance.
- Legal Contingencies: LGEIL and its promoter are subject to ongoing legal proceedings with claims totalling ~Rs 4,815 crore. Unfavourable rulings could materially impact the company’s financial health, operations, and reputation.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 11,607.01 crore
Fresh Issue
₹ -
OFS
₹ 11,607.01 crore
Price range
₹ 1,080 - 1,140
Lot size
13 shares
Issue Objective
This issue is entirely an Offer for Sale (OFS), meaning the company itself will not receive any funds from the proceeds. Instead, all proceeds will go directly to the selling shareholders.
Dates
Bidding open
7 Oct'25
Bidding close
9 Oct'25
Allotment date
10 Oct'25
Refund date
13 Oct'25
Listing
14 Oct'25
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
This document has been issued by Liquide Solutions Private Limited for information purposes only. It does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek personal and independent advice regarding the appropriateness of investing in any of the funds, securities, other investment or investment strategies that may have been discussed or referred herein and should understand that the views regarding future prospects may or may not be realized. In no event shall Liquide Life Private Limited and / or its affiliates or any of their directors, trustees, officers and employees be liable for any direct, indirect, special, incidental or consequential damages arising out of the use of information / opinion herein.