LG Electronics India’s subsidiary of the South Korean giant has finalized its much-anticipated Initial Public Offering (IPO) details, setting a price band of Rs 1,080 to Rs 1,140 per equity share. This entirely Offer for Sale (OFS) aims to raise Rs 11,607 crore through the sale of 10.18 crore shares by the parent company, representing about 15% of the equity. As no fresh shares are issued, all funds will benefit the promoter, with the Indian unit gaining public market visibility.
The IPO timeline includes anchor bidding on October 6, public subscription from October 7 to 9, allotment on October 10, and listing on BSE and NSE on October 14, 2025. This makes it one of the largest IPOs of the year, following heavyweights like Tata Capital.
LG Electronics India IPO: Key Details
The offering follows a book-built process with standard allocation norms. Here’s a quick overview:
| Component | Details |
|---|---|
| Total Issue Size | Rs 11,607 crore (OFS of 10.18 crore shares) |
| Price Band | Rs 1,080 – Rs 1,140 per share (face value Rs 10) |
| Lot Size | 13 shares (minimum investment ~Rs 14,820 at upper band) |
| Employee Reservation | 2.1 lakh shares at Rs 108 discount |
| Allocation Breakdown | 50% QIBs, 35% retail, 15% NIIs |
| Post-Issue Valuation | ~Rs 77,820 crore at upper band |
| Lead Managers | Axis Capital, Citigroup, Morgan Stanley, JPMorgan, BofA Securities |
Why Launch LG Electronics India IPO Now?
The parent LG Electronics Inc. is divesting a stake to unlock value while retaining 85% ownership post-IPO. This strategic move comes amid India’s booming consumer durables market, driven by urbanization, rising incomes, and GST reductions on electronics to 18%. The company, with manufacturing in Noida and Pune, leads in appliances like ACs, refrigerators, and TVs, excluding mobiles.
What Makes This IPO Appealing?
LG Electronics India stands out in the competitive electronics space against rivals like Samsung, Whirlpool, and Voltas. Key attractions include:
- Robust Financials: FY25 revenue at Rs 24,631 crore (up 14%) and net profit Rs 2,203 crore (up 46%), showcasing strong growth.
- Extensive Network: Over 35,000 touchpoints across urban and rural India, plus B2B sales and after-sales services.
- Market Leadership: Second-largest in appliances after Samsung, benefiting from sector growth projected at 11% CAGR to 2029.
- Global Backing: South Korean expertise in innovation, with this being the second Korean firm listing in India after Hyundai.
Potential Risks to Watch
Investors should note:
- No Fresh Capital: Proceeds go to the parent, limiting direct growth funding for the Indian arm.
- Competitive Intensity: Faces pressure from domestic and global players in a cyclical sector.
- Market Conditions: Volatility could affect subscription and listing gains; current GMP indicates flat debut.
- Regulatory Shifts: Changes in import duties or GST could impact margins.
FAQ: LG Electronics India IPO
1. What is the LG Electronics India IPO size and structure?
It’s a Rs 11,607 crore OFS of 10.18 crore shares with no fresh issue.
2. When does the IPO open and close?
Opens October 7, closes October 9, 2025; anchor on October 6.
3. What is the minimum investment for retail?
One lot of 13 shares, around Rs 14,820 at the top price.
4. Will the company receive IPO funds?
No, all proceeds go to the promoter LG Electronics Inc.
5. How has the company performed financially?
FY25: Revenue Rs 24,631 crore (+14%), profit Rs 2,203 crore (+46%).
Why Should You Pay Attention?
This IPO offers a stake in a market leader amid India’s electronics boom, ideal for long-term portfolios focused on consumer growth. Stay alert for subscription trends and analyst views.
For full IPO details, visit SEBI’s official website.