Highlights: LG Electronics becomes first ever IPO to cross 4 lakh subscription

Established in 1997, LG Electronics India has built a solid presence in the Indian consumer electronics and home appliances market. The company manufactures and sells a wide range of products including televisions, refrigerators, washing machines, air conditioners, and mobile phones.

The promoter of the Company is LG Electronics Inc.

India’s appliances and electronics market is projected to grow from Rs 6,87,500 crore in 2024 to Rs 10,96,500 crore by 2029, at an 11% CAGR. Factors such as rising income, changing consumer habits, and government incentives for manufacturing contribute to this growth.

The company holds top-three shares in key product categories: refrigerators (30%), inverter ACs (21%), washing machines (34%), and panel TVs (28%). Its distribution network spans 777 brand shops and over 35,000 B2C touchpoints across India.

“The IPO is entirely an OFS (Rs 11,607 cr) issue. At the upper price-band, the issue is valued at 35.1x P/E. The company is a market leader with leading market share across product categories. Leveraging it’s technological innovations, decades of operations which enable better understanding of consumer behaviour & navigating change of preferences along with band loyalty & value are all the factors that will command valuations. Compared to peers, we see the issue fairly valued, we recommend “SUBSCRIBE” to the issue,” said Aditya Birla Money in its IPO note

For FY25, LG Electronics India reported revenue of Rs 26,782 crore and a PAT of Rs 1,710 crore, reflecting a 46% year-on-year growth in profit. EBITDA margins stood at around 13%.

In CY24, the company’s B2B vertical is estimated at around ₹51,500 crore and is projected to register a 14% compound annual growth rate. LG Electronics is strengthening its presence in categories such as HVAC, LED displays, and digital blackboards, with emphasis on energy-efficient solutions and integrated systems.

The LG Electronics IPO has been subscribed 2.95 times. The retail category has been subscribed 1.84 times. The QIB portion has been subscribed 1.81 times and NIIs segment has seen 7.04 times subscription.

On the valuation front, Anand Rathi estimates indicate that “based on annualised FY26 earnings, the company is seeking a PE of 37.6 times, making the issue appear to be reasonably priced.” Looking at strong legacy brand recognition with market leadership across multiple consumer durables products, along with in-house production capacity among the peers in India, the brokerage house hs recommended a ‘Subscribe’ rating on the IPO.

“The IPO is entirely an OFS (Rs 11,607 cr) issue. At the upper price-band, the issue is valued at 35.1x P/E. The company is a market leader with leading market share across product categories. Leveraging it’s technological innovations, decades of operations which enable better understanding of consumer behaviour & navigating change of preferences along with band loyalty & value are all the factors that will command valuations. Compared to peers, we see the issue fairly valued, we recommend “SUBSCRIBE” to the issue,” said Aditya Birla Money in its IPO note.

“On the valuation front, based on annualized FY26 earnings, the company is seeking a P/E of 37.6 times, and a post-issue market capitalization of approximately Rs 7,73,801 million, making the issue appears to be reasonably priced. Looking at strong legacy brand recognition with market leadership across multiple consumer durables products along with inhouse production capacity among the peers in India making it giant in industry. Hence, we assign “Subscribe” rating for the issue,” said Anand Rathi Research in its IPO note.

At this hour, the LG Electronics IPO has been subscribed 2.21 times on Day 2 so far. The issue has seen steady demand across categories, with retail investors bidding 1.54 times, qualified institutional buyers (QIBs) 0.98 times, and non-institutional investors (NIIs) leading with 5.40 times subscription as of now. The bidding process is still underway.

“The company’s market leadership, operational scale, and profitability make it suitable for long-term investors, warranting a “SUBSCRIBE for Long-Term Investment” recommendation,” said the brokerage Canara Bank Securities Canmoney in its IPO note.

The IPO has generated noticeable grey market activity, with premiums currently between Rs 250 to Rs 322 per share. This suggests expected listing gains in the 22–28% range over the issue price. However, GMO is not the official listing price and fluctuate based in market sentiment.

India’s appliances and electronics market is projected to grow from Rs 6,87,500 crore in 2024 to Rs 10,96,500 crore by 2029, at an 11% CAGR. Factors such as rising income, changing consumer habits, and government incentives for manufacturing contribute to this growth.

At this hour, the LG Electronics IPO has been subscribed 1.73 times so far on Day 2. The retail portion is booked 1.31 times, the QIB category 0.56 times, and the NII segment 4.25 times. The bidding process is still in progress.

The anchor book collected Rs 3,475 crore, attracting global and domestic funds such as ADIA, Goldman Sachs, BlackRock, SBI Mutual Fund, and HDFC Mutual Fund.

The company holds top-three shares in key product categories: refrigerators (30%), inverter ACs (21%), washing machines (34%), and panel TVs (28%). Its distribution network spans 777 brand shops and over 35,000 B2C touchpoints across India.

On Day 2 of subscription, LG Electronics received an overall subscription at 1.45 times so far. The retail segment is subscribed 1.12 times, QIBs at 0.49 times, and the NII category at 3.50 times. The bidding is still underway.

For FY25, LG Electronics India reported revenue of Rs 26,782 crore and a PAT of Rs 1,710 crore, reflecting a 46% year-on-year growth in profit. EBITDA margins stood at around 13%.

The minimum investment is 13 shares per lot, which works out to around Rs 14,820 at the upper end of the price band. This defines the retail entry point for individual investors.

The IPO price band is set between Rs 1,080 and Rs 1,140 per share, implying a total company valuation of Rs 77,400–80,000 crore. Based on FY24/FY25 earnings, this translates to a PE range of 35–47x, which is above the average multiple of Indian peers.

The IPO is open from October 7 to October 9, 2025, with allotment expected by October 10. Listing on BSE and NSE is scheduled for October 14. The issue allocates 35% for retail investors, 50% for QIBs, and 15% for NIIs.

LG Electronics’ B2B segment, valued at Rs 51,500 crore in CY24, is projected to grow at a 14% CAGR, with the company expanding into HVAC, LED solutions, and electronic blackboards, focusing on energy efficiency and system integration.

“At the upper end of its price band, LG India is valued at a P/E of 38x (TTM EPS Rs 30) and EV/Sales of 3x, trading at a discount to its industry peers. Given its market leadership, strong brand, robust growth prospects, and strategic expansion into high-potential B2B segments, the company is well-positioned to benefit from rising demand. Thus, we recommend a ‘SUBSCRIBE’ rating,” said Choice Broking in an IPO note.

LG India leads in several appliance categories through 36,000+ retail touchpoints. It dominates the offline consumer electronics space, supported by wide brand visibility across cities and towns.

The company recorded a Return on Capital Employed (RoCE) of 45.3% and Return on Net Worth (RoNW) of 40.45% in FY24. It also held Rs 3,606 crore in cash and equivalents as of June 2024.

LG India reported Rs 21,352 crore in revenue for FY24, up 7.5% year-on-year, and Rs 1,511 crore in profit. In Q1 FY25, revenue stood at Rs 6,796 crore with a net profit of Rs 680 crore.

The company has a vast after-sales network – handling over 6 million service requests annually through 949 authorised service centres and a team of 12,590 engineers across 594 cities.

Established in 1997, LG India has built a strong presence in the consumer appliances segment with products such as TVs, refrigerators, air conditioners, washing machines, and microwaves.

As the entire issue is an OFS, LG Electronics India will not receive funds from the share sale. The proceeds will go directly to the parent company in South Korea.