LG Electronics India IPO Update

IPO Details

Company Overview

LG Electronics India Ltd (“LGEIL”) is a wholly owned subsidiary of LG Electronics, which is the leading single-brand global home appliances player in terms of market share by revenue in CY2024. It has the leading market share in the home appliances and consumer electronics (excluding mobile phones) industry in India, with #1 market share across key product categories.
They are also market leaders in India across multiple product categories including washing machines, refrigerators, panel televisions, inverter air conditioners, and microwaves, based on the market share (in terms of value) in the offline channel (which represents approximately 78% and 77% of the major home appliances and consumer electronics market (excluding mobile phones) in India in terms of value in the same period) for the 12 months ending December 31, 2024 and the 6 months ended June 30, 2025, respectively.
Their activities are organized into two business segments – (i) Home Appliances and Air Solution; and (ii) Home Entertainment. They have 2 manufacturing units located in Noida and Pune and have an extensive supplier network comprising 287 suppliers who have been with them for an average of 13.13 years as of June 30, 2025. It provides installation and repairs/maintenance services through 1,006 service centers across urban and rural India, supported by 13,368 engineers and 4 call centers, as of June 30, 2025 and also offer same-day installations.

Key Highlights

Objects of the Issue

Our View

The company was incorporated in 1997, as a wholly owned subsidiary of LG Electronics Inc. It has built a strong pan-India presence. The company’s brand philosophy “Life’s Good When We Do Good” resonates with its long-standing customer loyalty. The company was the 1st to introduce OLED TVs in India (2015) and one of the first to launch 4K and Smart TVs (2011). It has one of the largest in-house production capabilities among peers in India making it a giant in the industry. It is committed to the “Make in India” philosophy, whereby they manufacture products domestically and to the extent available source a significant amount of raw materials from domestic suppliers.
However, Risks to consider are Intense Competition, volatility in raw material prices, royalty fees payable to the parent (averaging 1.9 percent of revenue during FY23-FY25), geopolitical uncertainties, outstanding tax claims and contingent liabilities, Technology disruption and swift consumer preference shifts could impact margins, negative cash flows from investing and financing activities in the past could have an adverse effect on business, prospects, financial performance and cash flows.
On the financial front, the company’s Revenue/EBITDA/PAT grew at CAGR 10.75%/28.11%/27.99% respectively from FY23-FY25. The company operated on an EBITDA and PAT Margin of 12.76% and 8.95% at FY25 which is best in industry compared to peers and stood at 11.44% and 8.10% at Q1FY26. Its ROCE stood at 42.91% at FY25. The issue is priced at a P/BV of 12 based on its NAV of Rs. 94.99 as at Q1FY26 and if we attribute FY26 earnings, then the asking price is at P/E of 37x. As per RHP industry average P/E is around 56.49x.
LG Electronics India Limited is a Debt Free Company with market leader in major home appliances and consumer electronics (excluding mobile phones). With strong growth, expanding revenue streams, the company is well positioned to capture future growth. Looking at all the factors, risks, opportunities and valuation, and strong parentage, investors can invest with Long term horizon.