**LG Electronics India’s ₹11,600 Crore IPO Now Open: Should You Bid?**
*By Mudit Dube | October 7, 2025, 11:05 AM*
LG Electronics India Ltd’s much-anticipated initial public offering (IPO) has officially opened for subscription as of today. Investors have a three-day window to place their bids, with the IPO closing on October 9. The company has set a price band of ₹1,080 to ₹1,140 per share.
### IPO Details and Valuation
This IPO is exclusively an Offer for Sale (OFS) worth ₹11,600 crore, representing a 15% stake divestment by its South Korean parent company, LG Electronics Inc. At the upper end of the price band, LG Electronics India’s market valuation is estimated to be around ₹77,400 crore.
In the unlisted shares market, LG India is currently trading at a gray market premium (GMP) of ₹318, suggesting a potential listing gain of approximately 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 position in key product categories such as washing machines, refrigerators, televisions, air conditioners, and microwaves.
It operates two major manufacturing plants located in Noida and Pune, which collectively contribute to about 85% of the company’s sales. LG India also boasts an extensive retail network with over 35,000 touchpoints across the country.
### Market Leadership and Innovation
LG has been a pioneer in the Indian market, being among the first to launch 4K and Smart TVs in 2011. The company further strengthened its industry leadership by introducing OLED TVs in 2015. These innovations have reinforced its reputation as a market innovator.
Brokerages have highlighted the IPO’s attractive pricing, noting that the shares are being offered at a price-to-earnings (P/E) ratio of 35x based on FY25 earnings. This valuation is roughly 50% lower compared to peers, adding to the appeal for investors.
### Investment Recommendations
Brokerages such as Elara Capital and Choice Broking have recommended subscribing to the IPO. Their endorsements are based on LG’s strong market position, consistent growth trajectory, and upside potential driven by increasing consumer demand.
Anand Rathi has also expressed optimism regarding LG’s robust market share in essential categories including washing machines, refrigerators, and televisions.
### Financial Performance and Growth Outlook
Between FY22 and FY25, LG India achieved a revenue compound annual growth rate (CAGR) of 13%, despite sluggish consumer demand in the market. This growth was predominantly fueled by a 15% CAGR in the room air conditioner segment.
The company reported an EBITDA margin of 12.8%, which is notably higher than peers like Havells, whose margins range between 9-10%. Furthermore, LG’s localization rate has improved from 40% to 54% over five years, with expectations of increasing by 1-2% annually, as noted by Elara Capital.
### Risks and Challenges
While the IPO appears promising, analysts and brokerages have pointed out some risks. One key concern is a contingent liability of ₹315 crore associated with a revised Advance Pricing Agreement with the parent company, which could result in additional royalty payments.
Other challenges include potential headwinds from weak consumer sentiment, possible supply chain disruptions, and intensifying competition in key product categories such as air conditioners and smart TVs.
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**Should You Bid?**
Considering LG Electronics India’s strong market presence, steady financial performance, and attractive valuation, the IPO presents a compelling opportunity for investors. However, potential buyers should carefully weigh the risks, including contingent liabilities and market competition, before making an investment decision.
*The IPO subscription window closes on October 9, 2025.*
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