About LG Electronics India Limited - Mainboard IPO
LG Electronics India Limited is the Indian subsidiary of South Korean electronics giant LG Electronics Inc. Established in 1997, LG India is one of India’s leading manufacturers and sellers of home appliances and consumer electronics. The company has built a strong presence over 28 years, becoming a household name with products like televisions, refrigerators, washing machines, air conditioners, and microwave ovens.
LG India operates two manufacturing facilities in Noida and Pune, with plans for a third plant in Andhra Pradesh. The company has achieved significant localization with 97-98% of products manufactured locally and 54% of components sourced domestically, supporting the “Make in India” initiative.
READ FULL DRHP HERE: |SEBI DRHP LG ELECTRONICS|
IPO Details
Key Information
| Details | Information |
|---|---|
| IPO Price Band | ₹1,080 - ₹1,140 per share |
| Minimum Lot Size | 13 shares (about ₹14,820 at highest price) |
| Issue Size | ₹11,607.01 crore (100% Offer for Sale - OFS) |
| Face Value | ₹10 per share |
| Stock Exchanges | BSE and NSE (Mainboard IPO) |
| Registrar | Kfin Technologies Limited CLICK HERE |
| Book-running Managers | Kotak Mahindra Capital, Morgan Stanley India, JM Financial |
IPO Timeline (Important Dates)
| Event | Date |
|---|---|
| Anchor Investor Bidding | October 4, 2025 |
| IPO Opens | October 7, 2025 |
| IPO Closes | October 9, 2025 |
| Allotment Date | October 10, 2025 |
| Refunds/Unsuccessful Bids | October 13, 2025 |
| Shares in Demat Account | October 13, 2025 |
| Listing Date | October 14, 2025 |
What Is the Money Used For?
This is 100% Offer for Sale (OFS), meaning LG India will NOT receive any money from the IPO. All ₹11,607 crore proceeds go to the parent company LG Electronics Inc., which is selling 10.18 crore shares (15% stake). The Korean parent’s shareholding will reduce from 100% to 85% post-IPO.
Key Financials (as per Company Reports and SEBI Filings)
| Financial Metric | FY23 (₹ Cr) | FY24 (₹ Cr) | FY25 (₹ Cr) |
|---|---|---|---|
| Revenue from Operations | 19,827 | 21,352 | 24,610 |
| Profit After Tax (PAT) | 1,348 | 1,511 | 2,203 |
| EBITDA | 2,100 | 2,400 | 3,150 |
| EBITDA Margin | 10.6% | 11.2% | 12.8% |
| PAT Margin | 6.8% | 7.1% | 8.95% |
| Return on Equity (ROE) | 27% | 32% | 45% |
| Return on Capital Employed (ROCE) | 39% | 42% | 47% |
| Revenue Growth (YoY) | - | 7.7% | 15.3% |
| PAT Growth (YoY) | - | 12.1% | 45.8% |
Explanation of Financial Terms:
- Revenue: Total sales from home appliances and electronics
- PAT: Final profit after all expenses and taxes
- EBITDA: Operating profits before interest, taxes, and depreciation
- ROE/ROCE: How efficiently the company uses shareholders’ money and capital
- OFS: Existing shareholders selling shares, company gets no money
Financial Analysis:
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Revenue grew from ₹19,827 crore (FY23) to ₹24,610 crore (FY25) - 24% growth over two years
-
Growth rate improved from 7.7% (FY24) to 15.3% (FY25)
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PAT increased 63% from ₹1,348 crore to ₹2,203 crore in two years
-
EBITDA margin expanded from 10.6% to 12.8%, PAT margin from 6.8% to 8.95%
-
Higher margins indicate better cost management and pricing power
-
Return on equity improved dramatically from 27% to 45%
-
Return on capital employed increased from 39% to 47%
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High returns indicate excellent management of shareholder funds
Points of Caution:
- 100% OFS: Company gets no funds for expansion, purely exit for parent
- High import dependence: 46% raw materials imported from China, Korea, Singapore
- Currency risk: Import costs affected by rupee fluctuations
- Intense competition: Faces competition from Samsung, Sony, Whirlpool, local brands
- Premium valuation: ₹77,400 crore market cap appears rich for some investors
- Urban saturation: Growth dependent on rural market penetration
- Raw material costs: 75% of revenue goes to raw materials, margin pressure risk
Why Some Investors Like This Mainboard IPO
- Household brand: LG is a trusted name in Indian homes for decades
- Market dominance: Clear leadership in key appliance categories
- Quality management: Proven track record of consistent growth and profitability
- Structural growth: Rising middle class, urbanization driving appliance demand
- Technology access: Benefits from global LG’s innovation and R&D
- Local manufacturing: Aligned with government’s Make in India initiative
IPO FAQS
What is an IPO?
- An IPO (Initial Public Offering) is when a private company sells its shares to the public for the first time to raise money.
- Example: If a well-known pizza company wants to grow, it can list its shares on the stock exchange so anyone can buy a piece of the company.
How can you apply for an IPO (using Zerodha or Upstox)?
- Make sure you have a Demat account and your bank account is linked.
- Steps:
- Log in to your broker’s app (e.g., Zerodha Kite, Upstox).
- Go to the IPO section.
- Select the company’s IPO you want to apply for.
- Enter how many shares (or ‘lots’) you want and the price you wish to bid.
- Enter your UPI ID, submit your application, and approve the UPI payment request.
How are IPO shares allotted?
- If more people want shares than are available, the company uses a lottery system to decide who gets them.
- If you don’t get shares, your money is simply returned.
What is GMP (Grey Market Premium)?
- GMP shows the extra price people are willing to pay for IPO shares before they officially start trading.
- Example: If IPO price is ₹100 and GMP is ₹20, people are unofficially ready to pay ₹120. It hints at the IPO’s popularity but isn’t a guarantee.
Where to check upcoming IPOs (IPO calendar)?
- Visit popular finance sites like Chittorgarh, IPOWatch, or official exchange websites (NSE, BSE) and look for the “Upcoming IPO” section.
What are IPO listing gains?
- If the share’s price rises on the first trading day, you can make instant profit.
- Example: You buy at ₹150, and it opens at ₹200, you gain ₹50 per share.
How can you make profit from an IPO?
- Quick gains on listing day (if the stock price goes up).
- Long-term: If the company grows, the share price could increase further.
Which IPO is best to buy?
- There is no single best IPO. Check the company’s background, current demand, and GMP, but always research before investing.
- High GMP or popularity doesn’t guarantee profits.
Are IPOs safe?
- IPOs can be profitable but also risky; prices can go up or down sharply.
- Only invest if you are ready for potential losses.
How to check IPO allotment status?
- After the IPO process, check on exchanges (BSE/NSE websites) or the IPO registrar’s site (like K-Fintech, Bigshare,or mufg-intime) by entering your PAN or application number to see if you got shares.
Important Tips for Retail Investors Applying for an IPO
- Use Only Your Own PAN Card:
Avoid using the same PAN card for multiple IPO applications. For example, if you have already applied using your PAN for one IPO, don’t try to apply again with the same PAN under different accounts or through others. - Apply in the Right Category:
Ensure you select the correct investor category (such as Retail Individual Investor) when filling out your application. Applying under a wrong category can lead to rejection or disqualification. - Maintain Sufficient Bank Balance:
Before applying, ensure your bank account linked to the application has enough funds to cover the full bid amount. For instance, if the IPO application requires a payment of ₹15000, make sure your account holds at least that amount. - Use Your Own Bank Account:
Always apply through your own bank account. Using someone else’s account can cause your application to be rejected during the verification process. - Avoid Last-Minute Applications:
Don’t wait until the deadline day or moments before to apply. Last-minute submissions may face technical glitches or processing delays, reducing the chances of success.