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Salient features of the IPO:

* LG Electronics India Ltd. (LG India) incorporated in 1997, is a wholly owned subsidiary of LG Electronics Inc., the leading single-brand global home appliances player by revenue share in CY24. It is the number one offline market player in major home appliances & consumer electronics (excluding mobile phones) in India as per the market share (in terms of value) across multiple product categories including washing machines, refrigerators, panel TVs, inverter ACs, and microwaves, with offline retail accounting for ~77% of the home appliances and consumer electronics market in India for the six months ended 30th Jun. 2025. Backed by its global parentage, innovative technologies, and the strong “LG” brand, LG enjoys a trusted leadership position in India. LG India sells products to B2C and B2B consumers in India & outside India and also offers installation services, and repairs & maintenance services for all its products.

* This public issue is entirely OFS (Rs. 10,996.11 - 11,607.01cr), thus the company will not receive any proceeds from this public issue.

Key competitive strengths:

* Leading market share in the home appliances and consumer electronics industry in India with #1 market share across key product categories.

* Introducing innovative technologies tailored to the needs of the Indian consumers.

* Shaping consumer experience with pan-India distribution and after-sales service network.

* Operational efficiency through strong manufacturing capabilities and localized supply chain.

* Parentage of LG Electronics, which is the leading single-brand global home appliances player in terms of market share by revenue in CY23 and strong LG brand.

* Capital efficient business with high growth and profitability.

Business strategy:

* Build a strong foundation to capture long-term growth in India

* Continue to be a brand of choice for every Indian household across volume and premium market categories

* Diversify business model to create new consumer value

Risk and concerns:

* Dependence on the promoter and royalty obligations

* Raw material price volatility risk

* Risk of declining market share

* Risks in overseas operations and export dependence on promoter

* Foreign exchange rate fluctuations

* Seasonality Risk Affecting Sales and Financial Performance

* Competition

Valuation Overview and IPO Rating:

LG India holds the number one position in offline retail across key categories including washing machines, refrigerators, panel TVs, inverter ACs, and microwaves, with offline sales accounting for ~77% of the market. Supported by its global parentage, and the trusted “LG” brand, it serves both B2C and B2B customers, offering products alongside installation, repair, and maintenance services. LG India aims to establish India as a global manufacturing hub, investing $600 million in a new Andhra Pradesh factory to leverage competitive labor costs and strong domestic demand. The expansion will boost exports to Europe and other markets. India’s home appliances and consumer electronics market is expected to grow to ~Rs. 10,965bn by CY29, driven by a rising middle class, premiumization, and urbanization. The B2B segment, valued at ~Rs. 515bn in CY24, is projected to grow at a 14% CAGR, with the company expanding into HVAC, LED solutions, and electronic blackboards, focusing on energy efficiency and system integration. At the upper end of its price band, LG India is valued at a P/E of 38.0x (TTM EPS Rs. 30) and EV/Sales of 3.0x, trading at a discount to its industry peers. Given its market leadership, strong brand, robust growth prospects, and strategic expansion into high-potential B2B segments, the company is well-positioned to benefit from rising demand. Thus, we recommend a “SUBSCRIBE” rating.

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