The IPO is expected to raise close to ₹15,000 crore, making it one of the largest IPOs in India this year
LG Electronics India is preparing for one of the most anticipated initial public offerings (IPO) in 2025. This detailed article explains the key facts about the IPO, including the price band, shareholders, business position, risks, latest updates, and what could lie ahead.
Price Band and Issue Size
The LG Electronics India IPO will be a pure Offer for Sale (OFS). This means no new shares will be created or sold by the company itself. Instead, the parent company, LG Electronics Inc. from South Korea, plans to sell about 10.18 crore shares, which is 15% of its holding in the Indian unit.
The IPO is expected to raise close to ₹15,000 crore, making it one of the largest IPOs in India this year. The exact price band, which is the range of prices at which shares will be offered, has not been announced yet. Experts believe this will be decided closer to the launch, which is expected around the end of 2025, depending on market conditions.
Shareholding Structure
Before the IPO, LG Electronics Inc. owned 100% of LG India. After the sale of 15% through the IPO, the parent company will still hold 85% of the Indian unit.
This means LG India will remain a majority-owned part of the global LG group, but the IPO will allow Indian and global investors to buy a piece of the business. No other promoters or shareholders currently hold shares in LG India. All shares are held in a digital form.
Financial Performance and Business Strength
LG Electronics India has shown solid business growth in recent years.
In the financial year 2023-24, the company earned about ₹21,352 crore in revenue, which was a 7.5% increase over the previous year.
The profit for this period was about ₹1,511 crore, up from ₹1,345 crore the year before.
In the first quarter of the current year (April to June 2024), LG India earned ₹6,796 crore in revenue and made a profit of ₹680 crore.
LG India has strong financial health. It has no borrowings and keeps a cash reserve of around ₹3,600 crore. Its return on capital and return on net worth are both high, showing that the company uses its resources efficiently.
One point of concern is a contingent liability of ₹6,743 crore. This relates to a disagreement over royalty payments to the parent company. The matter is under discussion with Indian tax authorities.
Market Position and Operations
LG Electronics India is a market leader in consumer electronics and home appliances.
It has been the top company in India’s offline market in this sector for 13 years in a row (2011-2023).
LG India leads in product categories like refrigerators, washing machines, televisions, and air conditioners.
The company’s products are sold through a network of over 36,000 retail outlets.
It has 949 service centres and over 12,500 engineers serving customers across the country.
Most of LG India’s products are made locally. It operates factories in Noida (Uttar Pradesh) and Pune (Maharashtra).
To increase production capacity, LG India has started building a new plant in Sri City (Andhra Pradesh). This project is worth about $600 million and is expected to create almost 1,500 direct jobs and up to 10,000 indirect jobs when complete.
Risks to Consider
Like any major company, LG Electronics India faces certain risks.
Royalty payments to the parent company: The business depends on technology and brand licenses from LG Electronics Inc. Any dispute or change in these agreements could affect operations.
Competition from parent company: The parent company could also choose to compete directly in India in the future.
Supplier concentration: A large portion of raw materials comes from a few key suppliers. If supply chains are disrupted, this could affect production.
Competition from other brands: Companies like Samsung, Sony, Whirlpool, and Havells provide strong competition.
Economic changes: Fluctuations in the broader market, changes in government policies, or global economic issues could also impact the business.
Latest Updates and Timeline
LG Electronics India filed its first draft prospectus in December 2024. Approval from the market regulator was received in March 2025.
Initially, the IPO was planned for April or May 2025, but due to unstable market conditions, the company decided to delay the launch. The valuation was first expected to be around $15 billion, but estimates now place it closer to $10.5-11.5 billion.
The company’s management has made it clear that there is no rush to go public. They want to wait for better market conditions so the IPO can succeed. LG India is likely to update its filing in September 2025, aiming for a Q4 2025 IPO launch if market conditions improve.
Future Outlook
If successful, the LG Electronics India IPO will be one of the biggest in recent times.
Strong business base: The company’s leadership in home appliances and electronics, wide service network, and strong brand reputation make it attractive for investors.
Debt-free and profitable: LG India has no borrowings and generates healthy profits, which adds to its strength.
Expansion plans: The new factory in Andhra Pradesh will boost production and may help the company grow further in the coming years.
However, the company’s success will depend on market stability. Global economic trends, investor appetite for new IPOs, and local market conditions will play an important role.
Investors will also watch how the company handles risks like its tax dispute, supplier dependency, and rising competition.
