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By Nitin Negandhi
LG Electronics India Ltd.
LG Electronics India (LGI), a wholly owned subsidiary of LG South Korea, is making an offer for sale (OFS) of up to 15% of its capital at an upper price band of Rs. 1,140 per share. Following the issue, the parent company’s holding will reduce to 85%.
Incorporated on 20th January 1997, LGI is a leading manufacturer and distributor of consumer durables, including washing machines, refrigerators, panel televisions, inverter air conditioners, microwaves, and other appliances. It has a strong brand presence supported by over 900 service centres and over 12,500 engineers across India. Its business spans both business-to-business (B2B) and business-to-consumer (B2C) segments, with a focus on home appliances and consumer electronics.
| Name of the Company | LG Electronics | |
| Issue Open | 07-10-2025 | |
| Issue closes | 09-10-2025 | |
| Issue Size | ||
| Offer for Sale | Rs. in cr. | 11,607 |
| Face Value per share | Rs | 10 |
| Upper issue price band | Rs | 1140 |
Market cap to revenue gap:
At the upper price band, LGI’s market capitalisation is 3.2 times its revenue, in stark contrast to its parent company’s market cap-to-revenue ratio of just 0.14 times. Similar to Hyundai India and other multinational corporations (MNCs), LGI is capitalising on rich valuations in Indian stock markets. The Korean parent reported revenue of USD 61.4 billion in 2024 (Rs. 5,45,000 crore). A comparison between the parent company and LGI, the Indian subsidiary is given below:
| LG India vs. LG Korea | LG India | LG Korea | |
| Year ended on | March-25 | Dec-25 | |
| Revenue | Rs. in cr. | 24,366 | 5,44,860 |
| Market Cap | Rs. in cr. | 77,380 | 78,978 |
| Proceeds from OFS | Rs. in cr. | 774 | |
| Revenue to Market Cap | No. of times | 3.2 | 0.14 |
Financial performance:
LGI is the market leader in India in major home appliances and consumer electronics (excluding mobile phones) in terms of volume. It offers one of the widest product portfolios among leading players and was the first to introduce inverter air conditioners in India in 2014.
| Financials for the period / year ended | Jun-25 | Jun-24 | Mar-25 | Mar-24 | Mar-23 | CAGR (%) | |
| No of months | 3 | 3 | 12 | 12 | 12 | ||
| Income from operations | Rs. in cr. | 6263 | 6409 | 24,366 | 21352 | 19864 | 10.8% |
| Net Profit | Rs. in cr. | 513 | 680 | 2203 | 1511 | 1345 | 28% |
| EPS | Rs. | 32.5 | 22.2 | 19.8 | |||
| EBIDTA margin | % | 11.4% | 15% | 12.7% | 10.4% | 9.5% | |
| Net margin | % | 8.2% | 10.6% | 9% | 7.1% | 6.8% | |
Refrigerators contribute 27% of LGI’s total revenue, while washing machines, televisions, and air conditioners each account for over 20%. Home appliances contribute 75% of the company’s revenue, with the remaining 25% coming from the home entertainment segment (televisions).
Margins, however, are under pressure. For the quarter ended June 2025, EBIDTA margin declined from 14.95% to 11.44%, likely due to intensified competition.
Peer comparison:
Listed peers include Havells, Voltas, and Blue Star. LGI has outperformed all these companies on the margin front. The OFS has been priced at a price-to-earnings (P/E) ratio of 33 times, compared to over 50 times for its listed peers.
| Peer Comparison Financial year 2024-2025 | LG India | Havells | Voltas | Blue Star | |
| Income from operations | Rs in crore | 24,366 | 21,778 | 15413 | 11968 |
| EBIDTA margin | % | 10.4% | 9.9% | 2.7% | 2.7% |
| Return on capital employed | % | 45.3% | 19.4% | 4.4% | 19.9% |
| Return on net worth | % | 40.5% | 26.3% | 4.2% | 15.9% |
| EPS | Rs | 33 | 24 | 25 | 29 |
| PE Ratio | No of times | 35 | 63 | 53 | 65 |
| Face Value | Rs | 10 | 1 | 1 | 2 |
| CMP | Rs | 1140 | 1476 | 1352 | 1869 |
| Upper price band | |||||
Conclusion:
Although Korean companies are known for tightly pricing OFS issues, as seen in Hyundai India’s case, LGI’s OFS appears reasonably priced, leaving scope for listing gains. The grey market premium (GMP), which was at Rs. 145 last week, has crossed Rs. 170. However, GMP is only indicative and not based on official trades, and hence investors should remain cautious.
Disclaimer:
The writer is not a SEBI registered analyst. He and his friends and relatives may or may not participate in the IPO. Investors should consult their financial advisor before investing. Grey market premium is just an indicator and should not be relied upon.
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