LG IPO: Profit up, valuation down—a buy?

LG Electronics India is set to launch a ₹11,605 crore initial public offering (IPO) on Tuesday, one of the largest consumer-sector listings in recent years alongside Swiggy.

- Abhinaba Saha [e-mail]

The entire issue—a 15% stake sale by its Korean parent—comes amid a crowded IPO calendar and muted market sentiment.

Analysts say the response to LG's offer will reveal whether investor appetite for steady, domestically focused businesses remains intact after Urban Co.’s blockbuster debut revived confidence in India’s consumption story.

Dhruy Jain, consumer electronics analyst at Ambit Capital, expects healthy demand for LG's IPO, noting that its valuation has moderated since last year's draft filing range of ₹11-12 trillion. The issue now values LG India at about ₹77,380 crore at the upper end of the ₹1,140-a-share price band, according to its red herring prospectus.

This means investors will be paying about ₹34-35 for every rupee of profit the company earned in fiscal year 2025 (FY25). This is well below Havells, Whirlpool, Voltas, and Blue Star, which trade at 47-67x P/E multiples, despite LG’s stronger profitability and scale, LG’s promoters have left much more on the table for investors, especially as Hyundai’s IPO was deemed expensive last year, according to analysts.