IPO Size: Rs. 11,607 cr, Entirely Offer for Sale (OFS)

• By the promoter LG Electronics Inc (100% to shrink to 85%)

Price band: Rs. 1,080 to Rs. 1,140 per share

M cap: Rs. 77,380 cr, implying 15% dilution

IPO Date: Tue 7^th Oct to Thu 9^th Oct 2025, Listing Tue 14^th Oct 2025

Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.

Consumer Durables Leader for 13 years

LG Electronics India is a market leader in Indian home appliances industry, with product basket comprising refrigerator (27% of Rs. 24,300 cr FY25 revenue), air conditioner (22%), washing machine (21%), television (20%) and others like microwave, soundbar etc. Company enjoys 30% market share in refrigerator, 21% in inverter AC, 34% in washing machine and 28% in panel TV in India. Company has strong distribution reach, with 777 LG brand shops and 35,600 B2C touchpoints. 1.9% of sales is paid as royalty to the South Korean parent.

Greenfield Plant

LG has 2 manufacturing plants in India, at Noida and Pune, with 84% utilization in Q1FY26. It is constructing a 3^rd plant in Andhra Pradesh with Rs. 5,001 cr investment, to be operational by Mar 2027, besides undertaking brownfield capex, as reflected in Rs. 157 cr capital work in progress, as of 30.6.25, providing growth visibility. The capex will be funded internally, as company had cash and equivalents of Rs. 4,575 cr or Rs. 67 per share, as of 30.6.25.

Q1FY26 impacted by Short Summer Season

FY25 revenue grew 14% YoY to Rs. 24,367 cr making LG Electronics the biggest consumer durables company in the Indian stock market. FY25 EBITDA rose 40% YoY to Rs. 3,110 cr, translating into 13% EBITDA margin. FY25 PAT jumped 46% YoY to Rs. 2,203 cr, leading to 9% net margin.

Due to early monsoon this year, Q1FY26 summer season was impacted across industry, and LG’s revenue dropped 2% YoY to Rs. 6,263 cr with PAT down 24% YoY to Rs. 513 cr, leading to 8.2% net margin. EPS for Q1FY26 came in at Rs. 7.6, from Rs. 10 in Q1FY25. FY25 EPS was reported at Rs. 32.5, on equity of Rs. 679 cr (FV Rs. 10 each) and net worth of Rs. 6,484 cr, with debt-free balance sheet.  

Inexpensive Pricing

M cap of Rs. 77,380 cr and enterprise value (EV) of Rs. 72,800 cr translate into a revenue multiple of 3x and a PE multiple of 35x, on historic basis, which is seen attractive for 8% net margin and 37% RoE. Peers such as Voltas, Whirlpool, Blue Star, IFB are trading at PE of over 48x, despite lower topline, low-to-mid single digit net margin and much lower RoEs.

While Q1FY26 financials witnessed a drop, GST cuts and healthy monsoon keeps outlook for consumer durable industry positive for the rest of FY26E. LG, being a domestic leader, can make the most of the demand revival and strong economic growth.