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LG Electronics IPO
LG Electronics India Ltd
₹14,040 /13 sharesMinimum Investment
LG Electronics IPO Details
| Bidding Dates | Min. Investment | Lot Size | Price Range |
|---|---|---|---|
| 7 Oct ‘25 - 9 Oct ‘25 | ₹14,040 | 13 | ₹1,080 - ₹1,140 |
| Issue Size | IPO Doc |
|---|---|
| 11607.01Cr | RHP PDF |
Subscription rate
As of 09 Oct'25, 04:01 PM
| Qualified Institutional Buyers | 95.76x |
| Non-Institutional Investor | 21.19x |
| Retail Individual Investor | 3.23x |
| Employees | 6.69x |
| Total | 33.44x |
About LG Electronics
Founded in
1997
Managing director
Mr Hong Ju Jeon
Parent organisation
LG Electronics India Ltd
LG Electronics India Ltd IPO
https://www.youtube.com/watch?v=doDFV1daE38
Strengths & Financials of LG Electronics
Strengths
Risks
LG Electronics has maintained the number one market share in India’s home appliances and consumer electronics sector for 13 consecutive years (CY11 to CY23), as per the Redseer Report. The company leads in multiple product categories, including washing machines, refrigerators, air conditioners, microwaves, and panel televisions, across both volume and premium segments.
LG Electronics claims to have introduced innovative technologies tailored specifically to the needs of Indian consumers. With 27 years of experience in India, the company leverages its global leadership in technology to introduce industry-first innovations, such as organic light-emitting diode (OLED) televisions in 2015 and 100 percent inverter technology for air conditioners in 2017. LG also customises its products to suit local preferences, such as introducing washer-dryers to address monsoon-related drying issues and designing microwave ovens with settings for traditional Indian dishes.
LG Electronics claims to have established the largest distribution network among leading home appliance and consumer electronics players in India. As of June 30, 2024, the company operated through 36,401 B2C touchpoints, including LG BrandShops, modern trade stores, online platforms, and traditional outlets. Additionally, LG’s large after-sales service network, comprising 949 service centres and 12,590 engineers, ensures timely and professional support for installations, maintenance, and repairs.
The company claims to have strong manufacturing capabilities and an efficient localised supply chain, supported by two major manufacturing units in Noida and Pune. LG employs advanced automation technologies, such as smart monitoring systems and auto-guided vehicles, which help improve production efficiency and increase capacity utilisation. Additionally, the company’s phased approach to sourcing raw materials locally has reduced costs and improved competitiveness by lowering transportation, import duties, and inventory costs.
The company has witnessed a consistent increase in revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 16,834.21 crore in FY22 to Rs 19,864.59 crore in FY23 and Rs 21,352 crore in FY24. PAT increased from Rs 1,174.73 crore in FY22 to Rs 1,344.93 crore in FY23 and Rs 1,511.07 crore in FY24.
Purchase of raw materials accounted for Rs 4,291.72 crore (66.97 percent) of the company’s revenue in the period ended June 30, 2024; Rs 15,258.61 crore (71.46 percent) in FY24; Rs 14,915.81 crore (75.07 percent) in FY23; and Rs 12,122.12 crore (71.45 percent) in FY22. Any sudden increase in the price of such materials could adversely affect the company’s results of operations and financial condition.
The top five suppliers accounted for 21.45 percent of the company’s purchase of raw materials in the period ended June 30, 2024, 26.09 percent in FY24, 22.85 percent in FY23, and 27.35 percent in FY22. Any disruption in supplies from one or more of these suppliers could adversely affect the company’s business and finances.
The company sources a substantial portion of its raw materials from outside India. It accounted for Rs 1,790.26 crore (41.71 percent) of the company’s purchase of raw materials in the period ended June 30, 2024, Rs 7,809.26 crore (51.18 percent) in FY24, Rs 7,386.11 crore (49.52 percent) in FY23, and Rs 6,657.66 crore (54.92 percent) in FY22. Fluctuations in global commodity prices, geopolitical tensions, and economic conditions in supplier countries may lead to higher procurement costs, which could affect production costs, delivery times, and profit margins. Additionally, any changes in trade agreements or import duties could further escalate raw material expenses.
The company derives a significant portion of its revenue from the home appliance and air solution division. It accounted for Rs 5,060.94 crore (78.97 percent) of the company’s revenue from continuing operations in the period ended June 30, 2024; Rs 15,679.75 crore (73.43 percent) in FY24; Rs 15,030.68 crore (75.67 percent) in FY23; and Rs 12,418.23 crore (73.77 percent) in FY22. Furthermore, refrigerators alone accounted for Rs 2,160.69 crore (33.71 percent) of the company’s revenue from continuing operations in the period ended June 30, 2024; Rs 5,784.49 crore (27.09 percent) in FY24; Rs 5,805.57 crore (29.23 percent) in FY23; and Rs 4,948.27 crore (29.40 percent) in FY22. Any downturn in consumer demand for these products or disruptions in production could severely impact the company's overall revenue and financial performance.
The company’s manufacturing units are concentrated in Pune and Noida. The heavy reliance on these regions exposes the company to risks associated with economic fluctuations, competitive pressures, or demographic changes in Pune and Noida, any of which could significantly impact its revenue and overall financial performance.
The company and its promoter are involved in certain ongoing legal proceedings. Any adverse judgments in any of these cases could be detrimental to the company’s business prospects.
The top 10 trade partners accounted for 33.50 percent, 36.91 percent, 34.64 percent, and 29.08 percent of the company’s total sales value in the period ended June 30, 2024, FY24, FY23, and FY22, respectively. Any disruption in the relationship with these partners, failure to maintain sufficient inventory, or inability to effectively promote LG products could adversely affect sales and market perception. Furthermore, disruption in trade partner operations, such as financial instability, bankruptcy, or non-compliance, could also lead to revenue fluctuations and negatively impact the company's financial condition.
As of June 30, 2024, the company had contingent liabilities of Rs 2,607.37 crore. These include claims from the central excise/service tax/customs, sales tax, income tax, and other legal proceedings. If these claims materialise, they could adversely affect the company’s financial position, operations, and cash flows. Moreover, contingent liabilities related to royalty payments and the advance pricing agreement (APA) extension with LG Electronics may further complicate the company’s financial outlook if they crystallise.
LG Electronics benefits from various government incentives, including financial incentives under the Maharashtra Electronics Policy and Uttar Pradesh's Infrastructure and Industrial Investment Policy, as well as concessional customs duties under FTAs and CEPAs. The company also receives government grants and export incentives, with a total of Rs 77.61 crore in incentives for the period ending June 30, 2024. However, any delay in receiving these incentives, or the reduction, elimination, or unfavourable changes in government policies, could significantly harm the company’s financial condition, operations, and cash flows.
LG Electronics experiences seasonal fluctuations in product demand, with higher sales of products such as air conditioners, refrigerators, and compressors during the summer months (April to July) and lower sales during the winter months (September to December). Additionally, the demand for washing machines rises during the monsoon season, while TV and microwave oven sales increase during the festive and marriage seasons in India. These seasonal variations can lead to changes in sales volumes and may require adjustments to promotional strategies and product pricing. As a result, the company's sales and results of operations can vary significantly from one quarter to another.
LG Electronics Financials
*All values are in Rs. Cr
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Application Details of LG Electronics IPO
| Apply as | Price band | Apply Range |
|---|---|---|
| Regular | ₹1080 - 1140 | Upto ₹2 Lakh |
| Employee | ₹972 - 1032 | Upto ₹2 Lakh |
| High Networth Individual | ₹1080 - 1140 | ₹2 - 5 Lakh |
For LG Electronics IPO, eligible investors can apply as Regular & Employee.