Tue Oct 07 16:00:00 UTC 2025: **LG Electronics India Launches IPO, Eyes Untapped Markets**

**Mumbai, India** – LG Electronics India, the local arm of the South Korean electronics giant, has launched its Initial Public Offering (IPO) today, October 7th, and will close on October 9th, marking the biggest listing of the year after Tata Capital. The ₹11,607 crore IPO is a pure offer-for-sale (OFS) by the parent company, LG Electronics, seeking to cash out a portion of its stake after nearly three decades in the Indian market.

While the IPO won’t directly infuse capital into the company, it signifies LG India’s maturity and growth into a heavyweight player in the rapidly expanding Indian consumer electronics market. Experts believe LG is looking to unlock shareholder value and price the India operations based on its individual performance. The Indian electronics market is booming, with air conditioners and home entertainment systems experiencing substantial growth in recent years. Despite this, appliance penetration remains low compared to other countries, presenting a significant growth opportunity, particularly in Tier-2 and Tier-3 cities.

LG plans to leverage its established brand trust and extensive distribution network of over 35,000 retail touchpoints and 1,000+ service centres to target these untapped markets. Its manufacturing plants in Pune and Noida boast a capacity of 14.5 million products annually, with increasing localization of raw materials, contributing to faster production and reduced import costs.

LG India’s revenue is split between home appliances and air solutions (75%) and home entertainment (25%). The company has demonstrated strong financial performance, with revenues rising from ₹21,352 crores in FY24 to ₹24,366 crores in FY25, and profit after tax (PAT) increasing to ₹2,203 crores. The IPO price band is set at ₹1,080–₹1,140, implying a price to earnings (P/E) multiple of roughly 33–35x and a market cap of ₹77,000 crores.

However, the company faces challenges, including reliance on imported raw materials (particularly from China, Korea, and Singapore), intense competition in urban markets, and a dependency on its parent company’s licensing agreement. A significant tax dispute of ₹4,717 crore also looms. Despite these potential headwinds, LG India’s established market leadership, robust financials, and growth potential make it a noteworthy IPO in the Indian market, offering investors a chance to own a piece of a household name.

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