The contrast is striking. In September alone, foreign portfolio investors (FPIs) pulled out about $2.7 billion (almost ₹24 trillion) from Indian equities. Yet, the same investors poured ₹26,500 crore into anchor investments for IPOs, nearly three times more than in the previous year.
The message is clear: investors currently see IPOs as a better way to play India’s growth story. Well-priced offerings with strong fundamentals are attracting serious money.
According to EY’s Global IPO Trends Report, the average return from Indian IPOs in 2024 was 37%, far higher than the 7% delivered by the broader market. It’s this kind of disconnect that LG Electronics India is banking on with its IPO. The company is coming to market with a ₹11,600-crore offering from 7–9 October, at a time when new listings are attracting outsized attention.
But what does it mean for investors? Is LG Electronics India worth adding to your portfolio? In this listicle, we explore five compelling reasons why the IPO deserves a closer look.
#1 Fridges to TVs: LG’s market leadership in numbers
LG Electronics maintains a strong foothold in India’s appliance and consumer electronics market, with leading positions in refrigerators, washing machines, and televisions.
It has among the widest range of products (excluding mobile phones) in both the business-to consumer and business-to-business segments. It also offers installation, repair, and maintenance services that ensure customer stickiness.
In refrigerators, LG holds a steady 29-30% market share, while in washing machines, it remains the undisputed leader with an over 33% share, driven by its premium front-load and inverter models.
In panel televisions, the company accounts for nearly 27-28% of the market, particularly in OLED and large-screen formats where competition is relatively limited. Even in the crowded air-conditioner segment, LG retains roughly 18%.
However, the company has been losing market share over the past three years owing to intense competition. Most notably, its share in air conditioners dropped from 19.8% in 2023 to 17% in 2025.
LG operates in a fast-evolving, price-sensitive market and faces challenges from Indian, Chinese, and other global players such as Samsung, Whirlpool and Voltas. A continued loss of market share or aggressive competitor pricing could weigh on its business.
However, The company saw early signs of a rebound in the first half of 2025. Energy-efficient, innovation-led product launches, particularly in inverter models and premium categories, helped LG regain ground.
#2 The power of a global brand
Backed by its South Korean parent, LG Electronics India benefits from the strength of its globally recognised brand. This brand equity, built over decades, enhances consumer trust and affords the company premium positioning in India’s competitive consumer electronics market. It also provides strategic advantages through global sourcing and operational support. LG India procures key raw materials and components for its high-end product lines from the parent, ensuring consistency in quality and manufacturing standards.
India remains an important growth market for the LG Group, contributing close to 4% of LG Electronics Inc.’s global revenue.
#3 The innovation edge
Innovation has long been a cornerstone of LG Electronics’ competitive advantage. The company’s ability to translate technology into meaningful consumer experiences constitutes a moat that few rivals have managed to breach.
In India, nearly three decades of operations have given LG a deep understanding of local needs, from energy-efficient appliances suited for power fluctuations to AI-enabled washing machines designed for Indian fabrics. This localisation of global technology, guided by consumer insights, has helped the company maintain relevance across market cycles.
Meanwhile, partnerships with global technology leaders such as Qualcomm and Google have allowed LG to stay at the forefront of smart devices. Its focus on sustainability, through energy-saving appliances, recyclable materials, and eco-friendly packaging, also appeals to the growing number of environmentally conscious consumers.
At the group level, LG Electronics Korea continues to back innovation with scale. In 2024, the company invested a record 4.76 trillion won (about $3.3 billion) in research and development, an 11.2% increase over the previous year. R&D spending accounted for 5.4% of total revenue, underscoring the brand’s long-term commitment to technology-led growth.
The company also has 30 global research centres around the world, including in Sunnyvale, California, Chicago and Tokyo. These laboratories monitor the alterations in technology and develop high-tech products using advanced research and development.
The company has also opened multiple business innovation centers in India (it launched a fifth in Kolkata in 2024) to showcase emerging technologies, collaborate with partners, and cocreate local solutions.
#4 Operational efficiency drives superior returns
Between FY23 and FY25, LG Electronics recorded consistent growth in both revenue and profitability on the back of steady expansion in sales across its product segments.
Revenue from operations increased at a compound annual growth rate (CAGR) of 10.9%, from ₹19,868 crore in FY23 to ₹24,367 crore in FY25, while net profit clocked a 27.5% CAGR, suggesting improving operational efficiency and cost control.
On the margin front, LG stands out for its efficiency. The company’s operating margins strengthened from 9.5% in FY23 to 12.8% in FY25, resulting in a three-year average of 10.9%. Net profit margin also improved from 6.7% to 8.9%, averaging 7.6% over the period.
Return ratios further underscore this strength. Over FY23-FY25, LG Electronics India reported an average return on capital employed (ROCE) of around 41% and an average return on net worth (RONW) of nearly 36%, both comfortably above industry averages.
That said, input cost volatility remains a key variable. Raw material and traded goods account for about 65-70% of operating income, with 20-25% of inputs imported.
Prices of key commodities such as aluminium, copper, plastic and steel have remained volatile over the past few years. While LG India partially hedges its forex exposure, operating margins remain susceptible to fluctuations in raw material prices and exchange rates.
Sustaining such high return ratios will depend on LG’s ability to balance cost pressures with product premiumisation and maintain pricing discipline in a competitive market.
#5 Capturing tomorrow’s market today
India’s consumer electronics industry is entering a new growth phase, owing to structural tailwinds that go beyond short-term consumption cycles. According to Redseer, the sector is projected to grow at a 10% CAGR, to ₹7.22 trillion by 2029 on the back of rising disposable incomes, urban lifestyle upgrades, and a shift toward premium, feature-rich products and energy-efficient appliances.
This shift is already evident in the market. A growing number of consumers are moving away from mass-market products toward premium, technology-led ones. This, along with government initiatives such as production linked incentive schemes and the Make in India campaign are accelerating local manufacturing, and giving integrated players such as LG a competitive edge.
Premium products are also gaining traction in consumer durables. Between 2019 and 2024, discretionary spending grew at a 7-8% CAGR, alongside rising average selling prices and volumes, reflecting a clear preference for aspirational products. With incomes and urban aspirations rising, the adoption of connected, AI-enabled appliances is set to grow further.
To tap this evolving demand, LG India is rolling out a range of AI-enabled products that are already popular in developed markets. It is also upgrading more than 200 existing offerings, incorporating consumer feedback and emerging lifestyle trends to stay ahead in a fast-changing market.
With major facilities in Noida and Pune together contributing over 85% of sales, and a ₹5,000-crore unit planned in Andhra Pradesh, the company’s Make in India push goes beyond mere compliance.
Caution: valuations leave little room for error
LG Electronics India’s shares currently trade at a price-to-earnings (P/E) ratio of 51.2, slightly below the industry average of 57. The slight discount likely reflects recent market-share moderation, particularly in air conditioners, and a subdued performance in the June 2025 quarter, when revenue, operating profit, and net profit declined 2%, 25%, and 24% year-on-year, respectively, owing to a muted summer.
Even so, the stock’s valuation remains rich by industry standards, suggesting that much of the company’s strength has been priced in already. Its ability to sustain such a high valuation will depend on how quickly growth and margin momentum recover in the coming quarters.
Should you subscribe?
The LG Electronics IPO represents an opportunity to gain exposure to a highly efficient, innovation-driven, and well-managed company with a proven track record of innovation, operational efficiency, and capital discipline, operating in a fast-growing sector.
However, investors should note that the broader market remains volatile and the environment uncertain, with global headwinds and domestic earnings pressures making equities precarious. Investors should weigh the potential risks carefully before participating in the IPO.
Ayesha Shetty is a research analyst registered with the Securities and Exchange Board of India. She is a certified Financial Risk Manager (FRM) and is working toward the Chartered Financial Analyst (CFA) designation.
Disclosure: The author does not hold shares in any of the companies discussed. The views expressed are for informational purposes only and should not be considered investment advice. Readers should conduct their own research and consult a financial professional before making investment decisions.
