A Household Brand with Big Ambitions
LG Electronics India, a trusted name in consumer electronics and home appliances for nearly three decades, is preparing for one of the most high-profile debuts on Dalal Street. Since its establishment in 1997, the company has grown into a market leader across refrigerators, washing machines, air conditioners, and televisions, consistently holding the top spot in offline retail for over 13 years. Now, in 2025, the South Korean multinational’s Indian arm is set to take a historic step with its first-ever public issue, aiming to raise a massive ₹15,000 crore.
Industry insiders suggest the IPO will open in the second week of October, with shares likely to list by the third week. This makes it the most awaited offering of the year, and potentially the biggest—rivaling Tata Capital’s upcoming ₹17,000 crore issue.
According to market reports, LG Electronics Inc., the parent company, has secured all necessary approvals from the Securities and Exchange Board of India (SEBI). The draft red herring prospectus (DRHP) filed in December 2024 received clearance in March this year. While the IPO was initially scheduled for April-May, global trade tensions and tariff uncertainties led to a strategic postponement.
The offering will be an entirely offer-for-sale (OFS) by the South Korean parent. Over 10.18 crore shares with a face value of ₹10 each will be offloaded, equivalent to a 15% stake in LG India. Post-listing, the promoter will continue to hold 85%. The price band, exact issue size, and subscription dates will be announced in early October, following a series of investor roadshows planned across major Indian cities.
If successful, LG’s IPO will surpass HDB Financial Services’ ₹12,500 crore issue in June and sit just behind Hyundai Motors India’s record ₹27,870 crore listing in October 2024.
Financial Performance: Consistent and Growing
LG Electronics India has demonstrated solid fundamentals in recent years, strengthening investor confidence.
· FY24 Results: Net profit rose 12.35% year-on-year to ₹1,511.1 crore, while operating revenue climbed 7.48% to ₹21,352 crore. EBITDA stood at ₹2,224.87 crore, giving a healthy margin of 10.42%.
· Q1 FY25 Snapshot: For the quarter ending June 30, 2024, the company posted ₹679.65 crore in profit on revenue of ₹6,408.8 crore.
· Business Mix: Home appliances and air solutions accounted for 79% of revenue, while home entertainment contributed 21%.
Such consistent performance reinforces LG’s reputation as a steady performer in India’s rapidly expanding consumer durables market.
Competitive Landscape
LG faces stiff competition in India from both domestic and global brands. On the listed front, peers include Havells, Voltas, Whirlpool, and Blue Star, while rivals like Samsung and Sony dominate in premium categories. Yet, LG’s scale, innovation-led product portfolio, and long-standing consumer trust provide it with an edge.
According to Redseer, LG has maintained leadership in home appliances and electronics (excluding mobile phones) for the first half of 2024, both in terms of volume and value. Its dominance in the offline channel has been unchallenged for 13 consecutive years.
Industry Outlook: Riding a Wave of Growth
India’s appliances and consumer electronics (ACE) industry is in the midst of transformation. Valued at over US$21 billion, it has grown at a 7% CAGR over the last five years. Analysts now project the pace to accelerate to 12% annually over the next half-decade, fueled by:
· Rising disposable incomes and aspirations for premium products.
· Urbanisation and rural penetration, widening the customer base.
· Government incentives for domestic manufacturing under the PLI scheme.
This backdrop offers LG an ideal environment to deepen its presence and expand across categories, from mass-market offerings to high-end smart appliances.
A Defining Market Moment
LG Electronics India’s IPO is more than just a capital-raising exercise—it signals a new chapter in the company’s relationship with the Indian market. By unlocking shareholder participation, the South Korean giant is reaffirming its long-term commitment to India, one of its fastest-growing and most strategic markets.
With proven financial strength, robust market leadership, and a favorable industry environment, LG is well-placed to attract strong investor demand. Whether it overtakes Tata Capital as the largest IPO of 2025 or not, the listing is set to be a milestone for India’s primary markets and for LG’s legacy in the country.
(With agency inputs)
