Company Overview
LG Electronics India Ltd (LGEIL), incorporated in 1997, is a wholly owned subsidiary of LG Electronics Inc., the world’s leading single-brand home appliance and consumer electronics manufacturer by revenue. The company is India’s #1 player across washing machines, refrigerators, panel televisions, inverter air conditioners, and microwaves (by value market share in the offline channel, which accounts for ~78% of India’s market).
With a strong 28-year presence in India, LGEIL offers one of the widest portfolios in the home appliances (HA) and consumer electronics (CE) space, combining global innovation with products tailored to Indian consumers. Its manufacturing operations span two advanced facilities in Noida and Pune, collectively producing over 14.5 million units annually with 85% capacity utilization.
LGEIL operates through two key business segments:
- Home Appliances & Air Solutions (HAAS): includes refrigerators, washing machines, ACs, water purifiers, dishwashers, and related products (~75% of FY25 revenue).
- Home Entertainment (HE): includes televisions, audio-visual products, and information displays (~25% of FY25 revenue).
The company maintains India’s largest sales and service network with 35,640 B2C touchpoints, 463 B2B partners, and 1,006 service centres supported by over 13,000 engineers, providing strong after-sales support nationwide.
Promoters & Shareholding
| Shareholding | Pre-Issue | Post-Issue |
| Promoters (LG Electronics Inc.) | 100.00% | 85.00% |
| Public | 0.00% | 15.00% |
| Total | 100.00% | 100.00% |
Public Issue Details
- Offer Type: 100% Offer for Sale (OFS) of 101.82 million equity shares by the promoter, LG Electronics Inc.
- Fresh Issue: Nil
- Issue Size: ₹10,994 – ₹11,605 crore.
- Price Band: ₹1,080 – ₹1,140 per share.
- Face Value: ₹10 per share.
- Employee Discount: ₹108 per share.
- Post-Issue Market Capitalisation: ₹73,307 crore – ₹77,380 crore.
- Bid Lot: 13 shares and multiples thereof (minimum ₹14,820 at upper band).
- Offer Period: October 07 – October 09, 2025.
- Listing Date: October 14, 2025.
- Book Running Lead Managers: Axis Capital, Citigroup Global Markets India, Morgan Stanley India, J.P. Morgan India, BofA Securities India.
- Registrar: KFin Technologies Ltd.
Objects of the Offer
- The entire issue is an Offer for Sale by the promoter; no proceeds will accrue to the company.
- The objective is to achieve listing benefits, enhance brand visibility, and provide liquidity to the promoter.
Pros
- Market leadership across all major home appliance and consumer electronic categories.
- Extensive manufacturing base and localisation (~54% local sourcing) reducing forex exposure.
- Pan-India distribution network with the widest retail and service footprint.
- Superior return ratios with FY25 RoCE of 42.9% and RoNW of 37.1%.
- Strong parentage and global brand equity, enabling consistent technology infusion.
- Strategic capex plan of USD 600 million for a new plant at Sri City (Andhra Pradesh) to enhance export capacity.
- Zero debt balance sheet, robust free cash flows, and high capital efficiency.
Risks
- High dependence on seasonal demand (summer-driven categories such as RACs).
- Margin pressures from competitive pricing and input cost volatility.
- Revenue concentration in domestic markets (~90% India).
- Limited product diversification beyond HA & CE, making it sensitive to consumer cycles.
- Regulatory risks around import duties, energy-efficiency norms, and localisation policies.
Industry Outlook
India’s home appliances and consumer electronics (HA & CE) market, valued at ~₹9.7 lakh crore in CY24, is projected to grow at an 8–10% CAGR to ₹14–15.9 lakh crore by CY29. Growth is driven by urbanisation, higher disposable incomes, aspirational consumption, and premiumisation.
Penetration levels for key categories like washing machines (~15%), air conditioners (~13%), and dishwashers (<5%) remain well below global averages, offering long-term headroom.
The Home Appliances segment is expected to expand at ~13% CAGR, while Consumer Electronics (led by TVs and audio) is projected at ~10% CAGR. Increasing online adoption, omni-channel retail, and “Make in India” initiatives further bolster domestic manufacturing momentum.
Financial Snapshot (₹ Crores)
| Particulars | FY23 | FY24 | FY25 |
| Revenue | 19,864.6 | 21,352.0 | 24,366.6 |
| EBITDA | 1,895.1 | 2,224.9 | 3,110.1 |
| EBITDA Margin (%) | 9.5% | 10.4% | 12.8% |
| Net Profit (PAT) | 1,344.9 | 1,511.1 | 2,203.3 |
| PAT Margin (%) | 6.8% | 7.1% | 9.0% |
| EPS (₹) | 19.8 | 22.3 | 32.5 |
| Net Worth | 4,319.8 | 3,735.8 | 5,933.8 |
| ROE (%) | 31.1% | 40.5% | 37.1% |
| ROCE (%) | 34.4% | 45.3% | 42.9% |
Valuation
At the upper price band of ₹1,140, the issue is valued at 35.6x FY25 EPS, with an implied EV/EBITDA of ~25x. Despite being a pure OFS, the company’s superior margin profile, zero leverage, and high return ratios (RoCE 43%, RoIC >100%) make valuations reasonable relative to listed Indian peers.
Given its leadership position, scale advantages, and resilient earnings visibility, LGEIL’s valuation premium over domestic peers such as Voltas, Havells, Blue Star, and Crompton appears justified.
Peer Comparison Analysis
| Metric (FY25) | LG Electronics India Ltd | Voltas Ltd | Blue Star Ltd | Havells India Ltd | Crompton Greaves Consumer |
| Market Cap (₹ Cr) | 77,380 | 38,500 | 24,400 | 88,300 | 28,900 |
| Revenue (₹ Cr) | 24,367 | 11,000 | 9,000 | 18,700 | 6,900 |
| PAT (₹ Cr) | 2,203 | 695 | 515 | 1,255 | 605 |
| Debt-to-Equity (x) | 0.0 | 0.2 | 0.3 | 0.1 | 0.1 |
| P/E (x) | 35.6 | 55.4 | 47.0 | 70.5 | 48.0 |
| EBITDA Margin (%) | 12.8% | 8.4% | 10.2% | 13.8% | 11.1% |
| PAT Margin (%) | 9.0% | 6.3% | 5.7% | 6.7% | 8.8% |
| ROCE (%) | 42.9% | 18.5% | 22.4% | 30.2% | 25.5% |
Operational Efficiency: LGEIL’s EBITDA margin of 12.8% surpasses most peers, supported by scale economies and premium positioning.
Return Ratios: ROCE of 43% and ROE of 37% are industry-leading, reflecting capital-efficient operations.
Valuation: Despite leadership in profitability and balance sheet strength, the valuation remains at a moderate discount to Havells and comparable to premium consumer durables peers.
Recommendation
With strong brand equity, category leadership, robust profitability, and efficient capital allocation, LG Electronics India Ltd is well positioned to benefit from India’s accelerating consumption and home appliance demand.
Despite being a 100% OFS, its consistent financial performance, superior margins, and leadership position warrant a “Subscribe (Long Term)” rating. The issue offers investors exposure to India’s premium consumer durable story through a high-quality global brand with a dominant domestic presence.
Disclaimer
This article should not be construed as investment advice, please consult your Investment Adviser before making any sound investment decision.
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