**LG Electronics India’s ₹11,600 Crore IPO Now Open: Should You Bid?**
*By Mudit Dube | Oct 07, 2025, 11:05 AM*
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**What’s the Story?**
LG Electronics India Ltd’s initial public offering (IPO) has officially opened for subscription today. The bidding window will remain open for three days, closing on October 9. The company has set a price band between ₹1,080 and ₹1,140 per share for this offer.
Notably, this IPO includes only an Offer For Sale (OFS) worth ₹11,600 crore, representing a 15% stake divestment by LG Electronics Inc., the South Korean parent company.
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**Market Valuation**
At the upper end of the price band, LG Electronics India’s market valuation is pegged at approximately ₹77,400 crore. Shares are currently trading in the unlisted gray market at a premium (GMP) of ₹318, indicating a potential listing gain of around 28% above the upper price band.
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**About the Company**
Founded in 1997, LG Electronics India stands as one of the largest manufacturers and distributors of home appliances and consumer electronics in the country. The company holds a dominant position across categories such as washing machines, refrigerators, televisions, air conditioners, and microwaves.
LG India operates two major manufacturing plants located in Noida and Pune, which together account for approximately 85% of its sales.
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**Market Leadership and Business Expansion**
LG India boasts an extensive retail network with over 35,000 touchpoints nationwide. It was among the pioneers in launching 4K and Smart TVs in India back in 2011 and further solidified its position as an industry innovator by introducing OLED TVs in 2015.
Brokerages have praised the IPO for its attractive pricing, which is set at a price-to-earnings (P/E) ratio of 35 times FY25 earnings—about a 50% discount compared to its industry peers.
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**Brokerage Recommendations**
Leading brokerages such as Elara Capital and Choice Broking have recommended subscribing to LG India’s IPO. They highlight LG’s strong market position, consistent growth trajectory, and expected benefits driven by rising consumer demand as key reasons for their positive stance.
Anand Rathi also expressed optimism regarding LG’s sustained market share in essential categories like washing machines, refrigerators, and televisions.
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**Financial Outlook**
Despite a generally muted consumer demand environment, LG Electronics India posted a robust 13% revenue CAGR from FY22 to FY25. This growth was largely propelled by the room air conditioner segment, which expanded at a 15% CAGR during the same period.
The company’s EBITDA margin stands at 12.8%, notably higher than peers such as Havells, which maintain margins around 9-10%. Elara Capital further noted that LG’s localization rate has improved significantly from 40% to 54% over the past five years and is projected to increase by 1-2% annually.
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**Risks and Challenges to Consider**
Despite the strong fundamentals, brokerages have flagged some risks for investors. LG Electronics India faces a contingent liability of ₹315 crore related to a revised Advance Pricing Agreement with its parent company, which may require an additional royalty payment.
Analysts have also cautioned about potential headwinds stemming from weak consumer sentiment, possible supply chain disruptions, and intensifying competition in categories such as air conditioners and smart TVs.
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**Should You Bid?**
Given LG Electronics India’s robust market position, attractive IPO pricing, and promising growth prospects, subscribing to this IPO could offer significant upside. However, potential investors should weigh these positives against the highlighted risks and their own investment goals before making a decision.
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*Stay tuned for further updates on LG Electronics India’s IPO and market performance.*
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