Should You Plug Into The LG Electronics IPO?

For almost 30 years, LG Electronics India Ltd (LGEIL) has been part of everyday life in Indian homes. Now, the consumer durable giant is making a historic market debut with its much-awaited IPO, which opened for subscription today and closes on October 9, 2025. The IPO offers an entry point into a brand trusted by millions, backed by a global powerhouse, with solid fundamentals, strong balance sheet and unmatched distribution strength.

The buzz around this IPO is high, but as always, investors should weigh the growth opportunities against the risks before making a decision. For a detailed review, see our comprehensive IPO analysis here.

LG Electronics India IPO Details 

• Issue Details: Mainstream
• Issue Size: Rs 11,607.01 crore
• Fresh Issue: -
• Offer for Sale: Rs 11,607.01 crore
• Price Band: Rs 1,080 – Rs 1,140
• Lot Size: 13 shares
• Listing Date: October 14, 2025

Overview of LG Electronics India Ltd

• 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.

LG Electronics India Key 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.

LG Electronics India 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.

Final Thoughts: Should You Subscribe to LG Electronics India’s IPO?

• 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 ~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.

For a deep dive into other IPOs, explore: IPO Corner on Liquide