The dry spell in the primary market is expected to be over soon as LG Electronics India is expected to launch its highly-anticipated initial public offering (IPO) by end of this month. The consumer durables major, owned by South Korean parent chaebol LG, is slated to file its updated draft red herring prospectus (UDRHP) with the capital market regulator SEBI in the second half of this month and plans to hit the Dalal Street in the last week of this month, as per information from market sources reported by Fortune India.

LG Electronics India has already started roadshows to woo potential investors for its IPO, said market sources. The company had filed its draft IPO papers with SEBI in December 2024, and obtained the regulator's observations on March 13, 2025.  

LG Electronics is expected to disclose price band, issue dates, and exact issue size later this month. The company looks to raise ₹15,000 crore via IPO route, which is completely an offer for sale by its South Korean parent. This is the second South Korean company to tap the Indian share market following Hyundai Motors India (HMIL), which got listed in October last year after raising ₹27,870 crore in the country’s largest ever public issue.

As per the draft red herring prospectus (DRHP), LG Electronics Inc. will sell over 10.18 crore shares of face value ₹10 each, representing a 15% equity stake in its Indian arm, over OFS route. Post-IPO, the promoter will hold 57.69 crore shares, or 85% stake in the Indian subsidiary.

LG Electronics, which specialises in consumer electronics, home appliances, and mobile communications, competes with listed entities Havells, Voltas, Whirlpool, and Blue Star. It also competes against fellow Korean brand Samsung and Japan’s Sony in the highly competitive consumer appliance market in India.

For the financial year 2023-24, LG Electronics India reported a 12.35% year-on-year growth in profit to ₹1,511.1 crore, and its revenue from operations rose 7.48% cent to ₹21,352 crore. The operating profit, or EBITDA, stood at ₹2,224.87 crore with a margin of 10.42%.

For the three months ended June 30, 2024, the profit stood at ₹679.65 crore, and the revenue was ₹6,408.8 crore. Segment wise, home appliances and air solution contributed around 79% of the total revenue, while home entertainment division generated the remaining 21% of the topline.  

Incorporated in 1997 as a wholly owned subsidiary of South Korean parent, LG Electronics is operating in India for the last 27 years, commanding leadership in major home appliances and consumer electronics (excluding mobile phones) in terms of volume for the six-month period ending June 30, 2024, as per the Redseer Report mentioned in the DRHP. Additionally, it has been the number one player in this industry for 13 consecutive years (CY2011 to CY2023) as per the value market share in the offline channel in India, as noted in the report.

India’s appliances and electronics market has grown at 7% in the last 5 years and this growth is expected to accelerate to 12% in the next 5 years, driven by rising disposable incomes, growing urbanisation, and increasing penetration of appliances and electronics in both urban and rural areas.

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