LG Electronics IPO: Massive $1.3 Billion Offering Set to Launch
LG Electronics IPO: Massive $1.3 Billion Offering Set to Launch
Introduction
The highly anticipated IPO of LG Electronics, scheduled to open on October 7, 2025, is set to create waves in India’s bustling IPO market. With an issue size of ₹11,500 crores, this public offering is entirely an Offer For Sale (OFS) by its Korean parent company and is aimed at achieving a valuation of approximately $8.7 billion.
Company Overview
- Year Founded: 1958
- Industry: Consumer Electronics, Home Appliances
- Business Model: Manufacturing and selling of consumer electronics, home appliances, and B2B solutions.
- Founders: Koo In-Hwoi
- Revenue: ₹84.2 trillion (approx. $63.19 billion) in 2023
- Headquarters: Seoul, South Korea
IPO Details
- IPO Type: Mainline
- Issue Size: ₹11,500 crores (entire offer for sale)
- Price Band: ₹1,080 to ₹1,140 per share
- Lot Size: 13 shares
- GMP (Grey Market Premium): Not available yet
- Open Date: October 7, 2025
- Close Date: October 9, 2025
- Listing Date: October 14, 2025 (Tentative)
IPO Objectives
The primary objectives of the LG Electronics IPO are to enhance market presence in India, repay debts, and strengthen its capital base in a highly competitive market.
Pre-IPO Placements
Details regarding pre-IPO placements and major investors are still under wraps; however, the IPO is primarily driven by the backing of its parent company, LG Electronics Inc.
Financial Highlights
- Revenue: ₹84.2 trillion in 2023
- Profit After Tax (PAT): Not publicly disclosed
- Return on Equity (ROE): Not publicly disclosed
- Revenue Trends (Last 3 Years):
- 2021: $60 billion
- 2022: $62 billion
- 2023: $63.19 billion
Peer Comparison
When compared to peers like Samsung Electronics and Sony Corporation, LG has a competitive landscape with respectable P/E and ROE ratios but highlights the importance of a continued growth strategy.
Strengths
- Strong brand value and recognition in consumer electronics.
- Diverse product line catering to various consumer needs.
- Innovation-led strategy with continuous R&D investments.
Risks
- High competition within the consumer electronics industry.
- Global supply chain vulnerabilities affecting production costs.
- Market volatility and changes in consumer preferences.
Expert Verdict
Investment in LG Electronics offers a unique opportunity to tap into a well-established brand in a dynamic market but comes with inherent risks typical to large IPOs amidst market conditions.
Subscription Status
The subscription period from October 7 to October 9, 2025, will cater to Qualified Institutional Buyers (QIB), Non-Institutional Investors (NII), and Retail Investors. The overall sentiment looks positive based on early market buzz.
Allotment & Listing Timeline
- Allotment Date: October 12, 2025
- Listing Date: October 14, 2025 (tentative)
FAQs
- How can I apply for the IPO? Investors can apply through online brokerage accounts or banks offering IPO services.
- What is the expected GMP? Currently not available, but it will be tracked as the IPO date approaches.
How to Apply
For detailed instructions on how to apply for the IPO, visit our moneycontrol.com.
