LG Electronics India IPO: Good or Bad Investment Opportunity?
LG Electronics India has already received SEBI approval and now the company is set to launch a ₹15,000 crore Initial Public Offering (IPO) in October 2025, which will be the largest IPO of the year. The IPO is a pure Offer for Sale (OFS), with the South Korean parent, LG Electronics Inc., selling a 15% stake in its Indian subsidiary. LG India is a market leader in home appliances and consumer electronics, and as we said this IPO is structured as a pure Offer for Sale (OFS), with LG Electronics Inc. divesting 10,18,15,859 equity shares of face value ₹10 each. For investors point of view the Axis Capital is the coordinating lead manager, and SEBI received the draft red herring prospectus on 6 December 2024. While some investors are optimistic about its market potential to generate profits for long term, others are cautious due to the OFS structure and market dynamics. Here’s a detailed perspective.
LG Electronics India IPO Highlights
| Feature | Details |
|---|---|
| Issue Size | ₹15,000 crore approx. |
| Issue Type | Pure Offer for Sale (OFS) |
| Selling Shareholder | LG Electronics Inc. (South Korea) |
| Stake Being Sold | 15% stake in LG Electronics India |
| Expected Launch | First half of October 2025 |
| Face Value | ₹10 per share |
| Registrar | Kfin Technologies Limited |
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LG Electronics India has an extensive distribution and service network, including 36,401 B2C touchpoints, 949 service centers, and 12,590 engineers across India. Additionally, the company has gains reputation in 54 countries across Asia, Africa, and Europe. LG Electronics India operates two manufacturing units in Noida and Pune city, producing 13.99 million products in FY 2024. In terms of growth and future plans, the LG India is also planning to expand capacity with a new facility in Andhra Pradesh in the upcoming months. This new unit will generate new employment opportunities as the company’s supply chain is highly localized, with 58.29% of raw materials sourced domestically.
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4 Reasons Why LG Electronics India IPO Could Be Profitable
- Market Leadership: LG Electronics is a well-known brand not just in India but around the world. LG products can we found in any Indian household. It has a good reputation in the Indian consumer electronics and appliance sector, which may give investors confidence in the company’s growth potential.
- Strong Financial Performance: The company reported its highest revenue in India in FY 2024. Investors look for growth in revenue and with a notable increase in net profit, LG Elecronics India is showing a robust operational performance.
- Opportunity to Enter a Growing Indian Market: India’s appliance and electronics market is filled with consumers that buy washing machines, refrigerators, panel TVs, inverter ACs, and microwaves on a daily basis. The expansion in sales offering long-term growth opportunities for shareholders to gain profit.
- Reputed Underwriters: The attractive point is that, the Initial Public Offering is managed by a syndicate of lead managers, including Morgan Stanley India, Axis Capital, JP Morgan India, BofA Securities India, and Citigroup Global Markets India. Investors also note that KFin Technologies Limited acting as the registrar.
3 Reasons Investors May Be Cautious
- Pure OFS Structure IPO: Unlike a traditional IPO, all proceeds go to the selling shareholder (LG Electronics Inc.) rather than the company, which could be a concerning for investors. In simple terms, the company does not receive fresh capital for expansion.
- Timing and Volatility: Investors may not like this but the IPO was postponed from April-May 2025 due to global trade tensions and market volatility. Any type of interruption in IPO launch timing creates sensitivity to external market conditions.
- Valuation Concerns: There is not a single doubt that the LG Electronics is a big company but with such a large IPO issue size, pricing and market demand will play a key role in determining the actual listing performance in the real world.
Conclusion
The LG Electronics India IPO presents a mix of positives and caution points for investors. The company’s market leadership, strong financials of many years, reputable underwriters can be a positive investment opportunity. India is a developing country and LG Electronics IPO sees it as an entry into a growing market. Another side of this IPO which could be concerning is that it’s pure OFS structure and exposure to market volatility. The IPO is an important event, but there is also a doubt on proper valuation.
Since the IPO is yet to launch, it is too early to label it as “good” or “bad.” Investors can grab this opportunity to invest in a well-established brand but they should carefully analyze the LG Electronics India DRHP prospectus, risk factors, and market conditions before making final decision. It more like wait-and-watch opportunity.
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Frequently asked questions
Expected in the first half of October 2025.
Offer for Sale (OFS) means the selling shareholder receives all proceeds, and the company does not raise fresh capital.
LG Electronics Inc., South Korea, is divesting its stake.
