The IPO market continues to be buzzing and some big bag IPOs are set to be unveiled next week. Among them, one of the closely watched IPO will the common household name, LG Electronics India, a subsidiary of the global electronics giant. It is all set to open its subscription window on October 7.
According to the brokerage report by Nuvama, the company’s dominance across categories like washing machines, refrigerators, televisions, inverter air-conditioners, and microwaves puts it in a strong position.
But the real question for investors is whether the IPO pricing leaves enough room for growth. Let’s take a look at what is the brokerage say of this upcoming IPO –
LG Electronics India IPO: Market dominance in home appliances
LG Electronics entered the Indian market in 1997. Since then, it has become one of the top players in the consumer durables space and also a common household name.
As per the brokerage report, the company currently enjoys “market leadership (by value in offline channel) across washing machines (WMs), refrigerators, panel televisions, inverter air conditioners (ACs) and microwaves.”
Talking of the financial performance of the company, between FY19 and FY25, revenue, EBITDA, and PAT grew at a CAGR of 8%, 5%, and 6%, respectively.
Moreover, in FY25 alone, the revenues were up 14%. EBITDA surged 37%, and PAT rose 44% year-on-year. According to the brokerage, the company’s returns are robust, with a “median post-tax RoCE/RoIC of 34%/89% (45%/106% in FY25).”
LG Electronics India IPO: Expanding capacity with fresh capex
The brokerage highlighted that “the company has announced USD 600 million capex for a third unit to expand capacity to cater to the domestic market as well as exports.”
The new greenfield facility at Sri City in Andhra Pradesh will be developed over four to five years, with the first phase expected to be operational by end-CY26.
LG Electronics India IPO: Consumer durables industry outlook
According to Nuvama, “the consumer durables market shall expand at a CAGR of 8–10% from INR969bn in CY24 to Rs 1.44–1.59 trillion by CY29E.”
Factors such as rising urbanisation, higher disposable incomes, digital adoption, and aspirational demand are expected to fuel growth. At the same time, penetration of most home appliances in India remains far lower than global averages, giving companies like LG headroom to scale further.
The company also has an edge when it comes to reach and customer service. “LGEIL operates: i) the largest distribution network among leading HA and CE players with 35,640 B2C touchpoints and 463 B2B trade partners (49.46% with associations of 10+ years); and ii) an after sales network of 1,006 service centres and 13,368 engineers,” the brokerage report noted.
LG Electronics India IPO: Returns profile and near-term challenges
The brokerage pointed out that while FY25 saw strong growth, “Q1FY26 performance was subdued with revenue/EBITDA/PAT decreasing 2%/25%/24% YoY on account of a weak summer season (unseasonal rains undermining sales of RACs, which contribute 20%-plus to annual revenue).”
LG Electronics India IPO: The pricing question
For investors evaluating the IPO, valuations remain a critical factor. At the upper end of the price band, the issue is valued richly. According to the brokerage, “At Rs 1,140 (upper end of offer band), LGEIL is priced at 35.6x FY25 EPS.”