Upcoming LG India IPO nears valuation of South Korea parent

Mumbai: LG Electronics India's market value, as per the pricing of its upcoming initial public offering (IPO), is nearly on par with that of its South Korean parent.

At the upper end of the price band, the consumer electronic maker's market capitalisation is at over ₹77,000 crore or $8.7 billion compared with LG Electronics Inc's $8.9-billion market capitalisation on the Korean bourse.

The ₹11,607 crore issue, which is entirely an offer for sale by its parent company, is priced at ₹1,080-1,140 per share. The issue is set to open for retail subscription on October 7, and close on October 9. LG India's revenue in FY25 was $2.8 billion, while LG Inc's stood at $64.33 billion at the end of 2024.


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Still, analysts said the company's valuations, measured by its Price to Earnings (PE) ratio are cheaper compared to its local peers.

Harsh Thakkar, research analyst at Samco Securities said the issue appears attractively priced, making it compelling compared to listed peers such as Whirlpool (48x P/E), IFB (59x P/E), and Orient Electric Ltd. (49x P/E).

SBI Securities said at upper price band of ₹1,140, the issue is valued at P/E(price to earnings) multiple of 35.1 times based on the post-issue capital. "When comparing to its closest peers, the company outshines them in most valuation parameters with superior return profile," said the SBI Securities note, which has assigned a 'Subscribe' rating to the company's IPO.