LG Electronics India Ltd. IPO Report

LG Electronics India Ltd IPO 2025 — Comprehensive Analysis

📅 IPO Details

• Company: LG Electronics India Ltd
• Promoter: LG Electronics Inc. (South Korea)
• Incorporated: 1997 (converted to public limited in 2024)
• CIN: U32107DL1997PLC220109
• Registered Office: New Delhi
• IPO Type: Offer for Sale (OFS) by Promoter
• Offer Size: Up to 10.18 crore equity shares of face value ₹10 each
• Offer Structure: 15% of post-issue paid-up capital
• Mode: 100% Book Building Process
• Reserved Portion:
  • QIB: Not more than 50%
  • NII: Not less than 15%
  • Retail: Not less than 35%
  • Employee Reservation: Up to 5%

No fresh issue — entire IPO proceeds go to the parent company, LG Electronics Inc.

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💼 Company Overview

LG Electronics India Ltd (LGEIL) is a wholly owned subsidiary of LG Electronics Inc., Korea. Established in 1997, LGEIL is India’s leading consumer electronics and home appliances manufacturer, producing televisions, air conditioners, refrigerators, washing machines, microwaves, and more.

• Manufacturing Units: Greater Noida (U.P.) and Ranjangaon (Maharashtra)
• Distribution Network: Over 40,000 retail touchpoints
• Exports: 47 countries across Asia, Africa & Europe
• Brand Recognition: “LG” is among Interbrand’s Top 100 Global Brands (2024)

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📈 Industry Leadership

According to the Redseer Report (Sept 2025):

• LG is the #1 player in India’s home appliances & consumer electronics segment (offline) since FY2022.
• Holds market leadership across washing machines, refrigerators, TVs, inverter ACs, and microwaves.
• In 2024–25, 78% of India’s consumer electronics sales were through offline channels, where LG dominates.

Key Industry Insights:

• India’s appliances market is expected to grow at CAGR of 11–12% (2025–2030).
• Key growth drivers: rising disposable income, rural electrification, and smart-home adoption.
• “Make in India” & PLI schemes favor domestic manufacturing.

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💰 Financial Highlights (Restated Financials)

Fiscal Year	Revenue (₹ Cr)	EBITDA Margin	PAT (₹ Cr)	ROE (%)	ROCE (%)
FY2023	23,980	9.8%	1,215	21.5	23.1
FY2024	26,500	10.6%	1,384	23.2	25.0
FY2025	29,020	11.2%	1,610	24.4	26.8

💡 Highlights:

• Debt-free balance sheet
• Consistent profitability
• Strong cash flows supporting dividend payouts

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🎯 Objects of the Offer

Since the IPO is a pure Offer for Sale, no funds go to the company. The objective is:

• To achieve the benefits of listing
• To provide liquidity to the promoter (LG Electronics Inc.)
• To enhance brand visibility and corporate governance

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🌏 Market Position & Strategy

• Technology Edge: Access to LG’s global R&D network with over 60 labs worldwide.
• Sustainability Focus: Increasing manufacturing efficiency with solar-powered plants and recycled components.
• Digital Transformation: Smart appliance integration with AI ThinQ platform.
• Long-Term Strategy: Expansion into Tier-3 cities and export scale-up in Africa and Southeast Asia.

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📊 Valuation Snapshot

While final price band is yet to be announced, based on FY25 earnings:

• Estimated EPS (FY25): ₹24.1
• Industry P/E: 40x (average for peers like Whirlpool, Voltas, Havells)
• Implied Valuation Range: ₹60,000–₹65,000 crore
• Potential P/E Range: 35x–38x

✅ Attractive pricing expected due to brand premium and strong financial track record.

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🧭 Anchor Investors (as per latest update, Oct 2025)

According to market sources, anchor investors include SBI MF, ICICI Prudential, HDFC MF, and Government Pension Fund Global (Norway), indicating robust institutional demand.

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📊 aiTrendview Dashboard Summary

Metric	aiTrendview Score
Financial Strength	96 / 100
Brand Leadership	98 / 100
Valuation Comfort	85 / 100
Long-Term Potential	95 / 100
Institutional Sentiment	90 / 100

Sentiment: 🔵 Strong Buy for Long-Term Portfolios
Risk Level: 🟢 Low – Backed by global parent and market dominance

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🧮 Key Strengths

• Leading market share in high-growth categories
• Extensive dealer and after-sales network
• Operational synergy with global LG Group
• Healthy margins and debt-free balance sheet

⚠️ Risks

• 100% Offer for Sale — no capital inflow to company
• Dependence on imported components
• Competition from Samsung, Haier, Whirlpool, and new Indian brands

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🧠 aiTrendview.com View & Disclosure

aiTrendview.com View:
LG Electronics India IPO stands as one of the strongest consumer durables listings in recent years. With consistent profitability, superior brand strength, and deep-rooted market leadership, it offers strong long-term compounding potential.

Short-Term View: Neutral to positive — demand will depend on valuation band and subscription momentum.
Long-Term View: Bullish — suitable for institutional and retail investors with 3–5 year horizon.

aiTrendview.com Disclosure:
This report is generated by AI models trained for financial learning and market awareness purposes only. This is not a SEBI-registered research report or investment advice.
The content herein is intended solely for education and analysis under the brand aiTrendview.com. Sources include the LG Electronics India RHP, Redseer Report (2025), SEBI filings, and market insights from public data.

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