If you gr![]()
ew up with the hum of a single-window AC, the whirr of the semi-automatic washer, and a living-room TV that doubled up as family theatre, you know how central appliances are to India’s middle-class story. LG entered that story in the late 1990s and never really left. With the company lining up a domestic listing of its Indian arm, here is the grounded view investors asked for.
IPO snapshot
Structure: Pure offer-for-sale by the Korean parent. No fresh issue, so proceeds will not come to the Indian company. The DRHP pegs the offer at up to 101,815,859 equity shares of face value Rs 10 each, equal to 15% of post-offer equity.
Timing window: Management and bankers have guided to an FY26 Q2–Q3 listing window, with multiple reports pointing to an October–November 2025 target, subject to markets.
Book runners and registrar: Global houses, including Morgan Stanley, J.P. Morgan, BofA Securities, and Citi, are on the ticket, with KFin as registrar, per deal reports and DRHP references.
Implied valuation math: If 15% is sold for Rs 15,000–Rs 20,000 crore, that back-solves to an indicative equity value of Rs 1.0–1.33 lakh crore. Pricing will ultimately depend on market conditions and the final offer band.
India context and a short history
Economic liberalisation in the 1990s opened the door for global brands. LG incorporated its Indian unit in 1997, scaling local manufacturing at Greater Noida and Pune and building out a pan-India distribution and service network. In India, the company operates through two consumer-facing segments: Home Appliances & Air Solution and Home Entertainment.
Business model and operating footprint
LG India designs for local use cases, manufactures core SKUs domestically, and supplements entry-level ranges via third-party manufacturing to its specifications. Today, production is centred in Noida and Pune. To de-bottleneck capacity and deepen localisation, LG has committed a new integrated plant at Sri City, Andhra Pradesh, with an initial outlay of Rs 2,200 crore; phase one targets start of production in 2026, with TVs, monitors, refrigerators, and washers in the mix.
Revenue is generated across B2C and a growing B2B slate. The DRHP highlights ambitions to deepen B2B revenue pools such as HVAC and displays, with India’s B2B appliance and electronics market projected to grow at a mid-teens CAGR through 2028.
Product portfolio
Home Appliances and Air Solution: refrigerators, washing machines, room ACs, microwave ovens, dishwashers, water and air purifiers, compressors, and ceiling fans.
Home Entertainment: televisions, monitors, projectors, audio, signage, security cameras, PCs.
Financials at a glance
FY24 revenue from operations Rs 21,352 crore; PAT Rs 1,511 crore, up about 12% year on year. Total income Rs 21,557 crore.
Segment mix FY24: Home Appliances and Air Solution Rs 15,681 crore; Home Entertainment Rs 5,672 crore. Product mix skewed to refrigerators, washers, TVs and ACs. Royalty outflow to parent about Rs 375 crore in FY24.
DRHP restated metrics show steady mid-to-high single digit EBITDA margins over FY22–FY24 at the India unit. Category cyclicality and commodity swings remain key drivers.
Market position and demand drivers
TVs: IDC data for 2024 shows LG among India's top five smart TV vendors, with Xiaomi and Samsung the usual leaders, depending on the quarter.
Washers: LG has been a share leader in washing machines; Redseer-estimated leadership positions are referenced in Korean trade reporting.
ACs: Omdia estimates place LG’s AC share at roughly 31% in 2023 in India by units, though category shares can swing with summers and price wars.
Macro tailwinds: India’s appliances and electronics market is projected to compound at around 12% over five years on rising penetration and premiumisation. Potential indirect boosts could come from tax policy that lowers end-prices, which recent reportage suggests may be pursued by authorities. Seasonality and monsoon intensity still affect quarterly demand.
SWOT
Strengths
Brand equity built since 1997, wide product width, strong after-sales footprint. Two local plants with a third in the pipeline support localisation and speed to market.
Category breadth across appliances and TVs spreads risk and captures replacement cycles.
Parent’s global R&D and scale help with technology transfer and component sourcing.
Weaknesses
IPO is an OFS, so no primary capital for the Indian business. Royalty and import content remain structural costs.
Competitive pressure at entry and mid-tiers from value brands can compress margins in weak seasons.
Opportunities
Low-to-mid penetration in key categories, premiumisation in TVs and large-capacity appliances, and a growing B2B HVAC and display market.
Capacity expansion at Sri City to lift output, localisation and potential cost competitiveness over time.
Threats
Commodity and currency volatility, tariff or tax changes, and evolving competition law compliance.
Intense competition from Samsung, Whirlpool of India, Voltas-Blue Star-Havells ecosystems, and agile online-first brands.
Conclusion
LG Electronics India’s Rs 15,000 crore IPO is set to be one of the most closely watched events in India’s capital markets this year. With a solid FY24 performance, steady growth in profitability, and bold manufacturing expansion plans, the company offers investors a chance to participate in the journey of a global brand that has been deeply rooted in India for over two decades. However, it’s important to remember that this is a pure Offer-For-Sale, the parent company gains, while the Indian arm won’t receive fresh funds. Coupled with stiff competition in consumer durables and recent revenue softness, investors must weigh the long-term brand strength against near-term risks.
For investors seeking exposure to a household name with strong fundamentals and proven market leadership, LG’s IPO provides an entry point into a premium segment of India’s consumption story. The key will lie in valuations, post-listing performance, and how effectively LG continues to adapt to India’s evolving consumer market.
Disclaimer
This blog is purely for educational purposes and should not be considered investment advice. Please do your own research or consult a registered financial advisor before making any investment decisions.