LG Electronics India IPO to Launch October 7 with Complete Offer for Sale
LG Electronics India, a prominent manufacturer of home appliances and consumer electronics, is preparing to launch its highly anticipated maiden public offering on October 7, 2025. This represents another major IPO hitting the market next week, following Tata Capital's ₹15,512 crore offering scheduled for October 6.
The Korea-based parent company, LG Electronics Inc, will be divesting up to 10.18 crore equity shares through a complete offer-for-sale (OFS) with no fresh issue component. The IPO is valued at approximately $1.3 billion or ₹11,500 crore, making it one of the largest consumer electronics sector public offerings in recent Indian market history.
IPO Timeline and Share Listing Schedule
The company has established a structured timeline for its public market debut. The anchor book will open on October 6, allowing institutional investors to secure allocations before the main public offering. The IPO will remain open for retail and other investors from October 7 through October 9, providing a three-day subscription window.
Share allotment is scheduled to be finalized by October 10, with successful applicants receiving confirmations and unsuccessful bidders getting refunds processed promptly. LG Electronics India shares will commence trading on both the BSE and NSE effective October 14, 2025, marking the company's official stock market debut.
Complete Offer for Sale Structure
Unlike IPOs that combine fresh capital raising with existing shareholder exits, this offering consists entirely of an offer-for-sale by the Korean parent company. This structure means all proceeds will flow to LG Electronics Inc rather than into the Indian subsidiary's operations.
The primary objectives of the IPO are straightforward: execute the offer-for-sale and achieve listing on Indian stock exchanges. This approach provides the parent company with partial monetization opportunities while maintaining strategic control and allowing the Indian entity to benefit from public market visibility and liquidity.
Strong Historical Financial Performance
LG Electronics India demonstrated impressive financial results for the fiscal year ending March 2025. The company reported net profit of ₹2,203.3 crore, representing robust 45.8% growth compared to ₹1,511 crore in the previous fiscal year. This substantial profit expansion reflects strong operational execution and market share gains.
Revenue during the same period surged 14.1% to ₹24,366.6 crore, up from ₹21,352 crore in fiscal 2024. This healthy topline growth demonstrates the company's ability to expand market presence across its diverse product portfolio while maintaining pricing power in competitive categories.
Recent Quarter Performance Challenges
However, the first quarter of fiscal year 2025-26 presented significant challenges that investors should carefully evaluate. Profit declined sharply by 24.5% to ₹513.3 crore, down from ₹679.6 crore in the corresponding period of the previous fiscal year, indicating substantial pressure on profitability metrics.
Revenue also contracted 2.3% to ₹6,262.9 crore from ₹6,408.8 crore in the same quarter last year, suggesting either market softness or competitive pressures affecting sales volumes. This revenue decline, while modest, represents a concerning reversal from the previous year's strong growth trajectory.
Operating performance showed even more pronounced weakness, with EBITDA plunging 25.2% year-over-year to ₹716.3 crore from ₹958 crore. The EBITDA margin contracted significantly by 351 basis points to 11.43%, indicating pressure on operational efficiency, input costs, or competitive pricing dynamics.
Market Position and Competitive Landscape
Despite recent quarterly challenges, LG Electronics India maintains a strong competitive position in its core markets. The Noida-based company claims the number one position in major home appliances and consumer electronics (excluding mobile phones) for the six months ended June 2025, based on value market share in offline channels according to industry research.
The company competes with established listed peers including Havells, Voltas, Whirlpool, and Blue Star, each bringing distinct competitive advantages in specific product categories and distribution channels. This competitive environment requires continuous innovation and operational excellence to maintain market leadership.
Comprehensive Product Portfolio
LG Electronics India offers an extensive range of consumer products spanning multiple categories. The portfolio includes:
- Washing machines - Front-load and top-load variants
- Refrigerators - Single-door, double-door, and side-by-side models
- Panel televisions - LED, OLED, and smart TV technologies
- Inverter air conditioners - Energy-efficient cooling solutions
- Microwave ovens - Solo, grill, and convection models
This diversified product range provides multiple revenue streams and reduces dependence on any single category, offering resilience against product-specific market cycles.
Investment Banking Consortium
The IPO benefits from support by prestigious international and domestic investment banks serving as merchant bankers. The consortium includes Axis Capital, Citigroup Global Markets India, Morgan Stanley India Company, JP Morgan India, and BofA Securities India.
This high-quality banking partnership ensures comprehensive market coverage, sophisticated pricing mechanisms, and extensive investor outreach across institutional and retail segments.
Investment Considerations and Market Context
Potential investors should weigh multiple factors when evaluating this offering. The strong parent company backing and established market leadership position provide confidence in long-term viability. However, the recent quarterly performance deterioration raises questions about near-term growth momentum and margin sustainability.
The complete OFS structure means no fresh capital will be deployed for business expansion, potentially limiting near-term growth investments unless funded through internal accruals or debt. Additionally, the consumer electronics and appliances sector faces cyclical demand patterns, competitive intensity, and technological disruption that could impact future performance.
The timing of this IPO amid a busy October schedule, including Tata Capital's mega offering, will test market appetite for large consumer sector IPOs and could influence pricing dynamics and subscription levels.
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