For investors, it can be quite challenging to decide if the LG Electronics IPO is a good investment or not. If you are unsure and still thinking about whether to apply or skip this IPO, don’t worry. In this article, we present the top key factors and a detailed review of the LG Electronics IPO. This will help you analyze the strengths, risks, and financial details of the LG Electronics IPO, making your investment decision better.
About Company
Founded in 1997, LG Electronics is one of India’s leading players in offering home appliances and consumer electronics (excluding mobile phones). They are the number one leaders in India, known to offer many products under various categories such as washing machines, refrigerators, panel televisions, inverter air conditioners, and microwaves. The company sells its products to B2C and B2B consumers in India and outside of India.
Moreover, LG Electronics also provides installation, repair, and maintenance services for all of its products, ensuring a complete end-to-end customer experience and strong brand loyalty. With approximately 27 years of experience in the business, they know how to earn trust and attract users by establishing innovative products and understanding the demands of their Indian consumers. As a result, LG Electronics has become one of the first companies to introduce various technologies in home appliances and consumer electronics. The company has a dedicated team of 3,796 employees as of June 30, 2025.
Strengths
- They are the leading company in offering home appliances and consumer electronics in India, holding the number one position across several product categories.
- The 28 years of experience enable them to introduce innovative technologies in order to meet the needs of the Indian consumers.
- The company is almost debt-free.
- Over the years, the company has consistently paid high dividends, with a payout ratio of 172%.
Weaknesses
- The company required various raw materials for the operations. An increase in the price of raw materials can badly affect the business, cash flow, and financial condition.
- As of June 30, 2025, the company faces tax claims, which are about 73% of the net worth. The company does not guarantee that these claims will be resolved in its favor or that no additional liabilities will arise, which can negatively affect the business, cash flow, and overall business.
- Its market share in some product categories has decreased, if it continues to do so, it can adversely impact the overall business and financial condition.
- The company and promoters are involved in many ongoing legal cases, meaning any unusual outcome can badly affect the business, reputation, and operations.
LG Electronics IPO Review
| Reviewer | Recommendation |
| IPO Watch | May Apply |
| Lakshmishree Investment & Securities Ltd | Apply |
| Axis Capital | – |
| Centrum Wealth Management | Apply |
| Dolat Analysis and Research | Apply |
| ICICI Direct | Apply |
| Nuvama Wealth Management Limited | – |
| SBICAP Securities Limited | Apply |
| SMIFS Limited | Apply |
LG Electronics IPO Details
| IPO Open Date: | October 7, 2025 |
| IPO Close Date: | October 9, 2025 |
| Face Value: | ₹10 Per Equity Share |
| IPO Price Band: | ₹1080 to ₹1140 Per Share |
| Issue Size: | ₹1,250 Crores |
| Offer-for-Sale | Up to 10,18,15,859 equity shares |
| Registrar | Kfin Technologies Ltd. |
| IPO Lead Managers | Morgan Stanley India Company Private Limited J.P. Morgan India Private Limited Axis Capital Limited BofA Securities India Limited Citigroup Global Markets India Private Limited |
| Basis of Allotment | October 10, 2025 |
| IPO Listing Date: | October 14, 2025 |
| Listing | BSE, NSE |
Financial Performance Trend Details
| Particulars | 30 Jun 2025 | 31 Mar 2025 | 31 Mar 2024 |
| Total Income | ₹6,337.36 crores | ₹24,630.63 crores | ₹21,557.12 crores |
| EBITDA | ₹716.27 crores | ₹3,110.12 crores | ₹2,224.87 crores |
| Profit after Tax (PAT) | ₹513.26 crores | ₹2,203.35 crores | ₹1,511.07 crores |
| Net Worth | ₹6,447.85 Crores | ₹5,933.75 Crores | ₹3,735.82 Crores |
| Reserve and Surplus | ₹5,805.50 Crores | ₹5,291.40 Crores | ₹3,659.12 Crores |
| Total Borrowings | 0.00 | 0.00 | 0.00 |
Peer Comparison with the Company
| Name of the Company | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | RoNW (%) | NAV per Equity Share (₹) |
| LG Electronics Limited | ₹10 | [●] | ₹32.46 | 37.13% | ₹87.42 |
| Havells | ₹1 | 64.14x | ₹23.49 | 17.63% | ₹133.05 |
| Voltas | ₹1 | 52.68x | ₹25.43 | 12.76% | ₹197.66 |
| Whirlpool | ₹10 | 43.53x | ₹28.30 | 9.09% | ₹314.52 |
| Blue Star | ₹2 | 65.59x | ₹28.76 | 19.27 | ₹149.19 |
Key Performance Indicator
| KPI | Values |
| ROCE | 42.91% |
| RoNW | 37.13% |
| PAT Margin | 8.95% |
| EBITDA Margin | 12.76% |
| Price to Book Value | 13.04 |
Promoters & Track Records, if any
- The promoters of the company are LG Electronics Inc.
| Particular | Shares | % Share |
| Promoter Holding Pre Issue | 67,87,72,392 | 100% |
| Promoter Holding Post Issue | 67,87,72,392 | 85% |
Information on Industry’s P/E Ratio
The company LG Electronics’s IPO did not show the P/E ratio in the RHP. However, let’s check out the consumer electronics and home appliances industry’s P/E ratio to understand it more.
The industry P/E ratio ranges from a low of 43.53 to a high of 65.59, with an average of 56.49.
LG Electronics IPO – Should You Apply or Not?
LG Electronics comes with a strong brand recognition, consistent profitability, leading market share in consumer electronics and home appliances, end-to-end customer support, and a wide distribution network. However, high competition, premium valuations, and Dependence on Consumer Demand are some of the key risks that investors must keep in mind before subscribing.
As of October 6, the GMP of LG Electronics is ₹250, indicating a listing gain of around 18% to 23%. Short-term investors may apply for the IPO for listing gains, given strong Grey Market Premium (GMP) trends. Whereas Long-term investors must analyze the risks, valuation, demand fluctuation, and market sentiment before investing their money in it.
Please note:
Investors are advised to make their own decisions and apply entirely at their own risk. This article is written using information from the company’s RHP (Red Herring Prospectus) data and online sources. If you have any queries, kindly contact the IPO Watch Team.
