LG Electronics India IPO to Open on October 7, Valued At $12.5 Billion

LG Electronics Inc. has confirmed the launch of its Indian arm’s initial public offering (IPO). The issue will open for subscription on October 7 and close on October 9, according to the Red Herring Prospectus filed on Tuesday.

The South Korean parent will offload 10.2 crore equity shares of face value ₹10 each, representing 15% of the post-offer stake. The offer values LG Electronics India at around $12.5 billion, making it one of the country’s largest electronics listings.

IPO Details

LG Electronics India received approval from SEBI in March to go ahead with the public issue. The IPO is fully an offer-for-sale, with no fresh issue component. Investment banks including Morgan Stanley India, JPMorgan India, Axis Capital, BofA Securities India, and Citigroup Global Markets are acting as book-running lead managers. The successful listing will make LG India the second South Korean firm to debut in Indian markets, after Hyundai Motors India’s IPO in October 2024.

The listing is expected to draw significant investor interest due to LG’s established consumer presence. The company is already the second-largest electronics player in India by market share. The IPO also broadens opportunities for investors seeking exposure to consumer durables and household electronics. The post-offer shareholding will ensure wider public participation while giving the parent firm flexibility in capital deployment.

Business Overview

LG Electronics India operates in two major segments: home appliances and air solutions, and home entertainment. Its product portfolio covers refrigerators, washing machines, panel TVs, inverter air conditioners, and microwaves. The company holds the top position across these categories in India, based on value market share in offline channels. This market leadership has helped LG build a strong consumer base across urban and semi-urban centres.

LG has a clear strategy of focusing on high-demand product categories while maintaining a dominant offline presence. The company’s ability to scale distribution in multiple regions strengthens its position against domestic and multinational peers. Its listed competitors include Havells India, Voltas, Whirlpool of India, and Blue Star. LG’s broad product range ensures diversified revenue streams and resilience against market volatility.

Financial Performance

In FY24, LG Electronics India reported a profit of ₹1,511 crore, alongside a generous dividend payout of ₹2,093 crore, or ₹185 per share. This reflects strong profitability and a shareholder-friendly approach. The company’s revenue and earnings have grown steadily across segments.

In the first quarter of FY25, the firm posted revenue of ₹6,409 crore and a profit of ₹680 crore. Operating income reached ₹958 crore, giving an operating margin of 14.94%. As of June 30, LG held a cash balance of ₹3,606 crore, demonstrating strong liquidity. This healthy financial position supports both business expansion and stable returns to shareholders.

Conclusion

LG Electronics India’s IPO is set to be one of the largest consumer electronics listings in recent years. With a valuation of $12.5 billion and strong demand across appliances and entertainment products, the company enters the market from a position of strength. Its profitability, high dividend payouts, and healthy cash reserves make it attractive to investors. The listing is expected to reinforce India’s position as a key market for global electronics leaders.

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