Key IPO Highlights

Parameter	Detail
IPO Type / Structure	Offer for Sale (OFS) — the selling shareholder (South Korean parent LG Electronics Inc.) will sell existing shares; the Indian unit will not receive fresh capital.
Number of Shares Offered	Up to 10,18,15,859 equity shares
Face Value	₹ 10 per share
Price Band	₹ 1,080 to ₹ 1,140 per share
Issue Size / Proceeds	Approximately ₹ 11,604.90 – ₹ 11,607 crore
Stake being sold	~15% equity of LG India
Lot Size / Minimum Application	13 shares per lot (and in multiples thereof)
Reservation / Allocation	– 50% to Qualified Institutional Buyers (QIBs) – 35% to Retail Individual Investors (RIIs) – 15% to Non-Institutional Investors (NIIs) – Also, 2,10,278 shares reserved for eligible employees at a discount of ₹ 108 per share
Opening & Closing Dates for Subscription	Opens 7 October 2025, closes 9 October 2025
Allotment / Refund / Listing Timeline	According to ICICI Direct: • Allotment: 10 Oct 2025 • Refunds / Demat credit: 13 Oct 2025 • Listing Date: 14 Oct 2025
Lead Managers / Registrars	– Lead Managers: Axis Capital, Morgan Stanley India, Citigroup Global Markets India, J.P. Morgan India, BofA Securities – Registrar: KFin Technologies
Valuation / Market Cap (implied)	The IPO aims to value LG Electronics India around ₹ 77,380 crore (~US$8.7 billion) depending on final pricing

Company Overview

Name and Ownership

• LG Electronics India Ltd. (sometimes “LG India”) is a wholly-owned subsidiary of South Korea-based LG Electronics Inc.
• The upcoming IPO is structured as an Offer for Sale (OFS) by the parent (i.e. LG Electronics Inc.), meaning existing shares will be sold; the Indian company itself will not receive fresh funds from the IPO.

Business & Product Lines

LG India operates in consumer electronics and home appliances, with two broad divisions:

1. Home Appliances & Air Solutions
   Products include refrigerators, washing machines, air conditioners, cooking & cleaning appliances, water/air purifiers, compressors & motors, ceiling fans etc. This is the major revenue driver.
2. Home Entertainment
   Products like televisions, audio systems, monitors, security / surveillance cameras, and other related hardware/software.

Manufacturing / Facilities

• It has manufacturing plants in Greater Noida (Uttar Pradesh) and Pune (Maharashtra).
• A third plant is being constructed (or planned) in Sri City, Andhra Pradesh, with investment of about US$600 million (~₹5,001 crore) to boost capacity.

Distribution, After-sales, Support

• Strong distribution reach: many thousands of sub-dealers / B2C outlets across urban and rural markets.
• After-sales service network: several hundred authorised service centres, many long-standing vendor/engineer relationships. For example, as of June 2024, there were 949 authorised service centres across 594 cities, supported by 12,590 engineers.
• The company handles millions of service requests per year, and offers warranty / maintenance / AMC services.

Financials (Latest Available: FY24, Q1 FY25 / Q1 FY25-26 etc.)

Here are the key financials for FY24 (ended March 31, 2024) and some recent quarterly / interim numbers as per DRHP:

Metric	Value (FY24)	YoY Growth / Notes
Revenue from operations	~ ₹ 21,352 crore	Growth ~ 7.5% over FY23 (~₹ 19,865 crore)
Other income / total income	Total income ~ ₹ 21,557.1 crore; other income ~ ₹ 205.1 crore (declined ~16%)
Net Profit (PAT)	~ ₹ 1,511.1 crore	Up ~12.35% from ~₹1,344.9 crore in FY23
Pre-tax profit	~ ₹ 2,037.1 crore
Total expenses	₹ 19,520 crore in FY24 vs ~₹ 18,288.3 crore in FY23

Segment-wise breakdown:

• Home Appliances & Air Solution division: ~ ₹ 15,681.1 crore in revenue in FY24.
• Home Entertainment division: ~ ₹ 5,672.3 crore

Other key financial metrics / ratios (FY24)

• Return on Capital Employed (RoCE): ~ 45.3%
• Return on Net Worth (RoNW): ~ 40.45%
• Cash / Cash Equivalents: ~ ₹ 3,606 crore at end of Q1 (or around that period)
• Royalty liability / Contingent liability: ~ ₹ 6,743 crore mentioned as pending pertaining to royalty payments (APA etc.)

Recent/Quarterly (Q1 FY25 or as of June 2024)

• Revenue in Q1 ending June 30, 2024: ~ ₹ 6,796 crore
• Net Profit in same Quarter: ~ ₹ 680 crore

Strategic Highlights

• India is LG’s second-largest market after the US.
• The company is a market leader in several segments: No. 1 in refrigerators and washing machines; among top in microwave ovens; strong position in ACs (No. 2); and competitive in TVs and entertainment.
• Royalty / license-related payments to its parent in Korea are a material part of its cost structure, especially for technology, branding, etc.

Risk / Operational Notes

• There is a contingent liability related to royalty payments under an “Advance Pricing Agreement” (APA) with Indian tax/regulatory authorities. The final amounts and resolution are to be determined.
• Working capital cycle is relatively lean (short number of days) as per DRHP.
• Exposure to import cost fluctuations (for imported components), foreign exchange risk, royalty payments, competitive pressure in a fast-moving consumer durable market.

FAQs on LG Electronics India Ltd. IPO

1. What is LG Electronics India Ltd.?
LG Electronics India Ltd. is the Indian subsidiary of South Korea’s LG Electronics Inc., engaged in consumer electronics and home appliances like refrigerators, washing machines, TVs, and air conditioners. India is LG’s second-largest market after the US.

2. What type of IPO is LG Electronics India launching?
It is a pure Offer for Sale (OFS), where the parent company will sell a portion of its stake (~15%) in LG India. The company itself will not receive new funds.

3. What is the IPO opening and closing date?

• Opens: 7 October 2025
• Closes: 9 October 2025

4. What is the price band of LG Electronics India IPO?
The price band is ₹1,080 to ₹1,140 per share.

5. What is the issue size of the IPO?
The IPO size is around ₹11,605 – ₹11,607 crore, through the sale of over 10.18 crore shares.

6. What is the lot size and minimum investment required?

• Lot size: 13 shares
• Minimum investment (retail, lower band ₹1,080): ~ ₹14,040