Rs 11,607.01 Offer for Sale: Shares of LG Electronics India Get Listed on Exchanges at 50% above IPO Price

On Tuesday, October 14, 2025, shares of LG Electronics India Ltd were listed on the exchanges (BSE & NSE). On BSE, the stock is listed at Rs 1,715 per share and on NSE, the stock is listed at Rs 1,710.10 per share. IPO price was Rs 1,140 per share. 

LG Electronics India Limited (LGEIL) is a key player in the Indian consumer electronics and home appliance market, manufacturing and selling a vast portfolio of products, including televisions, refrigerators, and air-conditioners. The company maintains category leadership and brand equity, anchored by its two integrated manufacturing facilities in Noida/Greater Noida and Pune, coupled with a robust nationwide distribution and after-sales network. This operational scale supports its focus on innovation, particularly in energy-efficient and connected offerings like ThinQ products.

The public issue is structured entirely as an Offer for Sale (OFS), meaning LGEIL will not receive any proceeds, with the total issue size potentially aggregating up to Rs 11,607 crore at the upper price band of Rs 1,140 per share. Scheduled to open from October 7-9, 2025, the offering capitalises on a strong industry tailwind, as the broader Indian appliances and electronics market (excluding mobile phones) is projected to grow at a 14 per cent CAGR through CY2029 due to premiumisation and expanding e-commerce penetration.

Financially, LGEIL has demonstrated strong performance and margin accretion, with revenue increasing from Rs 19,864.59 crore in FY23 to Rs 24,366.64 crore in FY25. This top-line growth translated to a significant rise in Net Profit to Rs 2,203.35 crore in FY25, supported by an improved EBITDA margin of 12.76 per cent. The company’s balance sheet is characterised by exceptional strength, reporting nil total borrowings and high return metrics like an ROE of 36.91 per cent.

At a post-issue valuation of P/E 35.1x and EV/EBITDA 21.9x, the company appears reasonably priced compared to listed peers like Havells and Voltas, which trade at significantly higher multiples. LGEIL leverages its established brand, zero-debt status, and high return ratios to justify the valuation. However, the outlook warrants monitoring key threats, including intense competition, fluctuations in input costs and foreign exchange, and managing its high working capital intensity driven by growing receivables and inventory.

Disclaimer: The article is for informational purposes only and not investment advice.