LG Electronics India Ltd. (LGEIL), the country’s leading consumer electronics and home appliances company, has opened its IPO for subscription from 7th to 9th October 2025, marking one of the most anticipated listings in the sector. The company has filed an offer for sale of 10.18 crore shares aggregating up to Rs. 11,607.01 cr., priced between Rs. 1080–1140 per share, implying a post-issue market capitalization of around Rs. 77,380 cr.
Founded in 1997 as a wholly owned subsidiary of LG Electronics, South Korea, the company enjoys strong brand recognition and technological leadership. It has consistently held the No. 1 position in India’s home appliances and consumer electronics market (excluding mobile phones) since 2022, maintaining leadership in categories such as washing machines, refrigerators, air conditioners, panel TVs, and microwaves.
With 28 years of operations in India, LGEIL has built a deep understanding of Indian consumer preferences, supported by localized innovation and robust R&D. The company’s broad product portfolio caters to both B2C and B2B segments across domestic and international markets. It also boasts the largest distribution network in the sector, spanning 35,640 B2C touchpoints and 463 B2B trade partners across urban and rural India.
Financially, the company reported FY25 revenue of Rs. 2,43,666.38 mn, up 14% y-o-y, with profit of Rs. 22,033.48 mn and an EBITDA margin of 12.76%. Return ratios remain strong with ROCE at 42.91% and RONW at 37.13%. At the upper price band, the issue is valued at a P/E of ~35.12x on FY25 EPS of Rs. 32.46.
Investment Rationale
Ajcon Global has assigned a ‘Subscribe’ rating to the issue, citing the following positives:
- Dominant market share across major home appliance categories
- Strong global brand and technological innovation from parent LG Electronics
- Extensive distribution and after-sales network across India
- Deep consumer insights built over 28 years of local presence
- Proven track record of introducing first-to-market technologies tailored to Indian needs
Growth Strategy
LGEIL aims to expand manufacturing capacity and enhance technology-driven production to meet growing domestic and export demand. The company is also focusing on premium product lines such as side-by-side refrigerators and OLED TVs, increasing local sourcing, and exploring new models like appliance rental and subscription offerings.
Key Risks
The company’s dependence on its parent for IP, branding, and exports remains a structural risk. Concentration among top suppliers, tax demands of Rs. 4,717 cr., and an intensely competitive market also pose challenges.
Conclusion
Backed by strong parentage, deep brand trust, and consistent innovation, LG Electronics India stands out as the market leader in India’s home appliances space. With steady profitability, robust return metrics, and a clear expansion roadmap, the IPO offers investors an opportunity to participate in a well-established, growth-oriented consumer brand.
