LG Electronics India IPO: DRHP Highlights Strengths, Financials and Key Details of ₹11,600 Crore Offer

Mumbai | October 6 – LG Electronics India’s proposed IPO is one of the largest public issues in India’s consumer durables space. According to its DRHP filed with SEBI, the company aims to raise ₹11,607 crore through an Offer for Sale (OFS) of 10.18 crore equity shares by its parent, LG Electronics Inc. The IPO does not include a fresh issue, meaning the proceeds will go to the promoter entity.

IPO Structure and Key Details

The IPO is priced between ₹1,080 and ₹1,140 per share, valuing the company at approximately ₹77,380 crore at the upper price band. Anchor bidding opened on October 6, followed by public subscription from October 7 to October 9. The allotment will be finalised on October 10, and listing is expected on October 14 on both the NSE and BSE. Book-running lead managers include Citigroup Global Markets India, Morgan Stanley India, JP Morgan India, Axis Capital, and BofA Securities India, while KFin Technologies serves as registrar.

Key Strengths Highlighted in the DRHP

The DRHP states that LG Electronics India holds leading positions across major product segments such as washing machines, refrigerators, televisions, and inverter air-conditioners. It has the largest distribution network among home appliance companies in India, with over 35,000 touchpoints spanning LG BrandShops, retail chains, and e-commerce platforms.

Over 85% of its total sales volume is manufactured locally at its Noida and Pune facilities, underlining its commitment to localisation and cost efficiency in line with the Make in India initiative.

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Financial Performance

LG Electronics India’s DRHP discloses consistent financial growth over the last three years:

Revenue grew at a CAGR of 10.9% between FY23 and FY25, while net profit rose at a CAGR of 27.5%. Operating margins improved from 9.5% to 12.8%, driven by greater cost control and higher sales from premium product segments.

Risks and Dependencies as per the DRHP

The DRHP outlines key dependencies on LG Electronics Inc. for trademarks, technology, and strategic support. The company pays royalties to its parent under a licensing agreement, carrying a contingent liability of ₹315 crore, which may attract regulatory scrutiny. Fluctuations in raw material costs and foreign exchange rates could affect operating margins. Competition from domestic and international players such as Samsung, Whirlpool, and Blue Star remains a challenge.

Grey Market and Sector Overview

Unlisted market data shows LG Electronics India’s shares trading around ₹1,400, reflecting a 20–25% premium over the upper price band. The DRHP also notes that India’s consumer electronics sector is set to expand at a double-digit pace, supported by rising disposable income, premiumisation, and local manufacturing incentives under Make in India and the PLI scheme.

Conclusion

The DRHP underscores LG Electronics India’s strong financial health, extensive distribution network, and leadership in consumer appliances. The IPO is expected to enhance the company’s visibility and provide investors access to India’s fast-growing consumer durables market. Its disclosures reflect a well-diversified business model backed by operational strength and sustained profitability.

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Disclaimer: Grey market premium is unofficial and not regulated by SEBI. It only indicates market sentiment and should not be the sole factor in investment decisions.

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