**LG Electronics India’s ₹11,600 Crore IPO Now Open: Should You Bid?**
*By Mudit Dube | Oct 07, 2025, 11:05 AM*
LG Electronics India Ltd’s highly anticipated initial public offering (IPO) has opened for subscription starting today. Investors have a three-day window to bid, with the offer closing on October 9. The IPO carries a price band of ₹1,080 to ₹1,140 per share and exclusively comprises an Offer for Sale (OFS) worth ₹11,600 crore. This represents a 15% stake divestment by its South Korean parent company, LG Electronics Inc.
### Market Valuation
At the upper price band, LG Electronics India’s market valuation is pegged at approximately ₹77,400 crore. Currently, its shares are trading at a gray market premium (GMP) of ₹318 in the unlisted market, indicating a potential listing gain of around 28% over the upper price band.
### About LG Electronics India
Founded in 1997, LG Electronics India is one of the country’s leading manufacturers and distributors of home appliances and consumer electronics. The company holds a dominant market presence in key product categories including washing machines, refrigerators, televisions, air conditioners, and microwaves.
LG operates two major manufacturing plants located in Noida and Pune, which collectively contribute to about 85% of its sales. Its extensive retail network spans over 35,000 touchpoints across India, enhancing strong consumer reach.
### Market Leadership and Innovation
LG India has consistently been at the forefront of innovation. It was among the pioneers to launch 4K and Smart TVs in India back in 2011 and introduced OLED TVs in 2015, solidifying its reputation as an industry leader.
Brokerages have lauded the IPO for its attractive valuation, priced at a price-to-earnings (P/E) ratio of 35x based on FY25 earnings. This represents roughly a 50% discount compared to its peers, making the offer appealing to investors.
### Brokerages Recommend Subscription
Leading brokerage firms such as Elara Capital and Choice Broking have recommended subscribing to the IPO. They highlight LG’s strong market position, steady growth trajectory, and the expected boost from rising consumer demand as compelling reasons for investment.
Anand Rathi has also expressed optimism regarding LG’s expanding market share across critical categories like washing machines, refrigerators, and televisions.
### Financial Performance and Growth Outlook
Between FY22 and FY25, LG Electronics India posted a healthy revenue compound annual growth rate (CAGR) of 13%, despite a generally muted consumer demand environment. This growth was largely driven by the room air conditioner segment, which itself grew at a robust 15% CAGR.
The company maintains a strong EBITDA margin of 12.8%, outperforming peers like Havells, which report margins in the 9-10% range. Elara Capital also noted that LG’s localization rate has improved significantly—from 40% to 54% over the past five years—and is expected to climb by another 1-2% annually.
### Risks and Challenges
While the outlook is positive, brokerages have flagged certain risks that investors should consider. Notably, LG India faces a contingent liability of ₹315 crore related to a revised Advance Pricing Agreement with its parent company, which could translate into additional royalty payments.
Analysts also caution about potential headwinds due to weak consumer sentiment, possible supply chain disruptions, and intensifying competition in key categories such as air conditioners and smart TVs.
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**Should You Subscribe?**
Given LG Electronics India’s strong brand presence, steady growth, and attractive valuation, the IPO appears promising. However, investors should weigh the potential risks alongside the benefits before making an investment decision. As always, assess your risk tolerance and investment horizon before bidding.
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*Stay tuned for more updates on IPOs and market insights.*
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