Is LG Electronics India IPO Good for Long-Term Investment?
The LG Electronics India IPO is creating a lot of buzz between investors in the primary market. With an issue size of ₹11,607 crore, this Initial Public Offering by one of India’s top consumer electronics brands has caught the attention of both retail and institutional investors. But the big question is, is LG Electronics India IPO good for long-term investment? Let’s analyze the details.
What Makes LG Electronics India IPO Interesting?
LG Electronics India (LGEI) is a wholly owned subsidiary of LG Electronics Korea, incorporated in 1997. Over the years, it has become one of India’s most trusted brands in home appliances and consumer electronics, leading in categories like TVs, washing machines, refrigerators, and air conditioners. After this IPO, the promoter stake will fall from 100% to 85%, allowing Indian investors to participate in the company’s long-term growth.
What is the expected LG Electronics India IPO price band and lot size?
The price band and lot size for the LG Electronics India IPO have not been declared yet. These details will be updated once SEBI approves the draft red herring prospectus (DRHP). Investors can expect the lot size to be designed for retail participation, typically ₹14,000–₹15,000 per lot, based on industry norms.
Where are LG Electronics India’s manufacturing plants?
LGEI operates two major manufacturing plants located in Noida and Pune, running at 81% and 73% capacity utilization, respectively. The company is also building a new plant in Andhra Pradesh, which will start operations by FY27. Initially, it will produce air conditioners and compressors, later expanding to washing machines and refrigerators.
As of June 2025, the company exports to 47 countries across Asia, Africa, and Europe, showing its global reach.
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How is LG Electronics India’s financial performance?
| Year | Revenue (₹ crore) | Net Profit (₹ crore) | EBITDA Margin |
|---|---|---|---|
| FY23 | 19,811 | 1,345 | 9.5% |
| FY24 | 22,110 | 1,790 | 11.3% |
| FY25 | 24,366.6 | 2,203.4 | 12.8% |
Key Risks to Watch
- The business depends on imported components, making it sensitive to currency fluctuations which is hard to predict.
- Consumer demand cycles may impact short-term profitability.
- Competition from Indian local and global brands could put pressure on pricing.
However, LG’s brand strength in India, operational efficiency, and diversification help offset these risks in the long run.
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Valuation
At the expected upper price band, LG Electronics India IPO is valued at a P/E of around 35, compared to 48–65 for peers such as Whirlpool, Havells, Voltas, and Blue Star. The company’s valuation is attractive, considering its higher RoNW and lower P/E ratio than most listed competitors.
What is the LG Electronics India IPO GMP (Grey Market Premium)?
The LG Electronics India IPO GMP (grey market premium) will be updated once the IPO opens for subscription. Market observers expect the GMP trend to be strong due to the company’s brand reputation and solid financials.
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Conclusion
With strong financials, high profitability, brand dominance, and favorable market growth trends, the LG Electronics India IPO looks promising for investors who want exposure to the fast-growing consumer durables and electronics sector in India.
Disclaimer: This article is for educational and informational purposes only and should not be considered investment advice. Investors should conduct their own research and read and understand all official company documents, including the DRHP/RHP, with the assistance of a legally registered and certified financial professional before making any investment decisions. Any opinions or reviews expressed in this article are for informational purposes only and do not constitute a recommendation to buy or sell securities.
