Synopsis : LG Electronics India is preparing to revive its $1 billion IPO after a temporary pause, with a potential launch by year-end. The issue, a pure offer-for-sale, could be one of 2025’s biggest listings, offering investors a piece of India’s premium consumer electronics brand.
The proposed issue—purely an Offer for Sale (OFS)—involves the sale of 10.18 crore equity shares, representing 15% of the company’s equity. The parent company, LG Electronics Inc., will pocket all proceeds, with no fresh shares issued. If launched as expected, this IPO could become one of the year’s largest, second only to Hyundai among Korean entities in India.
Originally filing its DRHP in December 2024 and receiving SEBI approval in March 2025, LG’s strategic delay seems poised to pay off amid a bullish IPO market. The company’s Indian arm has grown exponentially since its 1997 debut, now dominating the appliance and electronics sector with robust service infrastructure and tech-driven product lines.
Financially, LG Electronics India reported Rs 21,352 crore in FY24 revenue and Rs 1,511 crore in net profit. With strong RoCE (45.3%) and RoNW (40.45%), and a debt-free balance sheet, the company’s fundamentals remain solid. Still, risks remain—most notably a Rs 6,743 crore contingent royalty liability under review, dependency on the parent firm, and supply chain vulnerabilities.
Yet, its leadership in washing machines, TVs, refrigerators, and ACs, along with 36,000+ retail points and 12,590 engineers servicing 949 cities, solidifies its moat. With 13 years of dominance in offline retail and expanding B2B ventures like transparent OLEDs, LG India stands as a formidable listing candidate.
Investors must consider the conflict-of-interest clause in the DRHP, highlighting the promoter’s right to compete in India directly. Raw material cost volatility, supplier dependency, and market competition are other key risks noted. However, for long-term investors bullish on India’s premium consumer growth story, LG’s upcoming IPO might just make life (and their portfolio) good.
Disclaimer:
This article is for informational purposes only and should not be considered as investment advice. Readers are advised to consult with a certified financial advisor before making any investment decisions.
