LG Electronics IPO: A Comprehensive Overview

Introduction

The LG Electronics IPO, expected to open in October, has generated considerable buzz in the Indian markets, marking a major milestone for one of the world’s leading consumer electronics companies. The LG Electronics IPO has attracted the attention of both institutional investors as well as retail investors given the company’s massive portfolio, brand equity, and decades of experience in the consumer electronics market, making the LG Electronics IPO a “must-invest” for many of the investors.

The issue comprises an Offer for Sale of up to 101,815,859 equity shares of face value ₹10 each, representing about 15% of the post-offer paid-up equity share capital. The promoter, LG Electronics Inc., is the sole selling shareholder. The IPO is being managed by a strong syndicate of book-running lead managers, including Morgan Stanley, J.P. Morgan, Axis Capital, BofA Securities, and Citigroup. The company may also allocate shares to anchor investors, with bidding scheduled for one working day prior to the IPO opening

The objectives of the LG Electronics IPO

1. To facilitate the Offer for Sale by the promoter shareholder.
2. To achieve the benefits of listing on the BSE and NSE, which will enhance visibility, brand image, and provide liquidity to existing shareholders

Industry Overview

The consumer electronics industry in India is undergoing rapid transformation. Rising disposable incomes, aspirational lifestyles, and increasing adoption of smart devices are key growth drivers. Government initiatives to boost domestic manufacturing and digitization have further expanded opportunities. In this context, the LG Electronics IPO represents an entry point for a resilient and innovation-driven company, operating within a dynamic industry, into the stock markets.

LG Electronics Business

LG Electronics operates across diverse segments—home appliances, air solutions, home entertainment, vehicle components, and business solutions. Its Indian operations cater to both premium and mass markets, offering products that range from televisions and refrigerators to advanced air conditioning systems and automotive electronics. The company has built strong distribution networks across metros and smaller cities, underpinned by robust after-sales service. This wide reach allows LG to capture demand from both established and emerging customer bases.

LG Electronics Strengths:

• Recognized and trusted globally, with decades of experience in India.
  
• Consumer durables spanning television sets, air-conditioners, B2B solutions, and vehicle components.
  
• Ongoing investment in smart appliances, AI, and next-gen technologies.
  
• Deep penetration in metros and tier-II/III cities.
  
• Extensive service centres enhancing customer loyalty.
  
• Scale efficiencies help mitigate cost pressures.
  
• Consistent revenues, margins, and cash flow generation.
  
• Focus on energy efficiency and eco-friendly products.
  

LG Electronics Risk Factors

• Domestic and global rivals driving price wars and rapid innovation.
  
• Exposure to imports and global trade leading to currency fluctuations.
  
• Risk of rapid product obsolescence.
  
• Input Cost Volatility – Particularly in semiconductors and raw materials.
  
• Demand spikes in summer for appliances like ACs while demand drops in winters.
  
• Environmental and compliance risks.
  
• Trade tensions affecting supply chains.
  
• Discretionary spending influenced by macroeconomic cycles.
  

Peer Comparison

LG’s diversified scale and global backing stand out versus domestic peers who focus on narrower product categories.

Financial Performance

(Balance Sheet Highlights (₹ in crore))

Cash Flow Statement (₹ in crore)

Conclusion

The LG Electronics IPO gives investors access to a company with robust fundamentals, an established brand, and a diversified product mix. While risks like competition and market volatility remain, LG’s consistent financial track record, innovation-led strategy, and sustainability focus add to its appeal. For both retail and institutional investors, the LG Electronics IPO represents a chance to participate in the growth of a global leader embedded deeply in the Indian market.

To know more, please refer to the LG Electronics Draft Redding Herring Prospectus