LG Electronics India Limited has been the number one player in major home appliances and consumer electronics (excluding mobile-phones) in India for the six months ended June 30, 2025, CY2024, CY2023 and CY2022 as per the market share (in terms of value) in the offline channel. They are also market leaders in India across multiple product categories including washing machines, refrigerators, panel televisions, inverter air-conditioners, and microwaves, based on the market share (in terms of value) in the offline channel (which represents approximately 78% and 77% of the major home appliances and consumer electronics market (excluding mobile phones) in India. Our Company was incorporated in 1997 as a wholly owned subsidiary of LG Electronics, which is the leading single-brand global home appliances player in terms of market share by revenue in CY2024. Company offered one of the widest product portfolios amongst leading home appliances and consumer electronics players (excluding mobile phones) in India as of June 30, 2025. They sell products to B2C and B2B consumers in India and outside India. They also offer installation services, and repairs and maintenance services for all the products. The activities are organized into two business segments – (i) Home Appliances and Air Solution; and (ii) Home Entertainment. Company operates the largest distribution network among leading home appliances and consumer electronics players in India as of June 30, 2025. Their distribution network spans across urban and rural India through 35,640 B2C touch points for the three months ended June 30, 2025. They serviced consumers through a dedicated team 463 B2B trade partners as of June 30, 2025, and also had a team of 286 employees engaging in customer service as of June 30, 2025. As of June 30, 2025, 49.46% of the trade partners have been distributing the products for over 10 years. Complementing the distribution network, company operates one of the largest after-sales service networks in terms of number of after-sales service center touch points among leading home appliances and consumer electronics players in India as of June 30, 2025. They provide installation and repairs/maintenance services through 1,006 service centers across urban and rural India, supported by 13,368 engineers and four call centers, as of June 30, 2025. They also offer same-day installations. Company has two advanced manufacturing units located in Noida (the 'Noida Manufacturing Unit') and Pune (the 'Pune Manufacturing Unit'). In Fiscal 2025 and in the three months ended June 30, 2025, they had an installed capacity of 14,510,000 products at the Noida and Pune Manufacturing Units collectively. In addition to manufacturing products, they also manufacture several key components, such as compressors and motors, at the Noida Manufacturing Unit and Pune Manufacturing Unit, giving them greater control over the product development process, product quality, costs and supply and delivery time. The manufacturing units in Pune and Noida operated at an aggregate capacity utilization rate of 76.80% for Fiscal 2025 (on a double shift basis at the Noida Manufacturing Unit, except for the microwave ovens production line which operates on a single shift). They intend to construct a third manufacturing unit in Andhra Pradesh to expand the manufacturing capacity. The new manufacturing unit is expected to become operational by Fiscal2027, initially focusing on the production of air conditioners and air conditioner compressors, followed by the manufacturing of washing machines and refrigerators in the forthcoming years. To facilitate storage and movement of products to and from the manufacturing units, they have a pan-India supply chain network of 25 product warehouses, comprising two central distribution centers ('CDCs') and 23 regional distribution centers ('RDCs') as of June 30, 2025. The CDC and RDC network help with inventory management and enables them to deliver products from the closest CDC or RDC, thereby shortening delivery times to the trade partners and the consumers. As per financial performance, LG Electronics India Limited has posted total income / net profits of Rs 20,108.58 Cr / 1,348.02 Cr (FY23), Rs 21,557.12 Cr / Rs 1,511.07 Cr (FY24), Rs 24,630.63 Cr / 2,203.35 Cr (FY25) and Rs 6,337.36 Cr / 513.25 Cr (Q1 FY26). So as per previous financials data, company has shown good results. Company has an average EPS of Rs 26.95 and average RoNW of 37.24% for last three fiscals. Issue is priced at a P/BV of 12 as per NAV of Rs 94.99/- as on 30.06.25. If we attribute latest earnings of FY24, FY25, TTM and annualised FY26 on equity post issue, then asking price is at a P/E of around 51.21, 35.12, 37.99 and 37.69 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Axis Capital Limited, Citigroup Global Markets India Private Limited, Morgan Stanley India Company Private Limited, J.P. Morgan India Private Limited and BofA Securities India Limited are associated with this IPO, and have handled 98 IPOs in last three fiscal years. ( As on 08.10.25 ) As per financials, LG Electronics India Limited has shown good results, RoNW is 37.13% and P/E is 51.21, 35.12, 37.99 and 37.69 respectively as per FY24, FY25, TTM and annualised FY26 earnings. So issue looks fully priced. Company is a leading player in home appliances and consumer electronics. So, we give SUBSCRIBE rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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