But the buzz now suggests that LG might be quietly stealing the spotlight from Tata Capital.
LG Electronics India is the Indian arm of South Korea’s LG Electronics Inc. The company is a market leader in home appliances and consumer electronics, with number one share across major categories — washing machines, refrigerators, air conditioners, panel TVs, and microwaves. In FY25, its offline retail contributed nearly 77% of total sales.
The IPO, entirely an offer for sale worth Rs 11,607 crore, is priced between Rs 1,080 and Rs 1,140 per share, valuing the company at Rs 73,380 crore.
While the company won’t receive fresh proceeds, the parent’s plan to unlock value through the listing is seen as a step toward long-term strategic expansion in India. LG already operates large-scale manufacturing facilities in Pune and Noida, with a total installed capacity of 1.45 crore products annually.
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Its strong financial performance — FY25 ROE of 37% and ROCE of 43% — showcases high capital efficiency, while the 13% EBITDA margin and double-digit profit growth underline operational strength.
As per brokerage estimates, the IPO’s valuation at around 35x trailing PE is “reasonable given its brand power, profitability, and leadership in consumer durables.”
Tata Capital, on the other hand, brings a completely different flavour to the market — a financial services giant backed by the Tata Group. The Rs 15,512-crore IPO includes a fresh issue of Rs 6,846 crore and an offer for sale of Rs 8,666 crore. The issue is priced between Rs 310 and Rs 326 per share.
The company plans to use the fresh capital to augment its Tier-I capital base, supporting growth in retail and SME lending. Tata Capital, with assets of Rs 2.5 lakh crore and a pan-India network of 1,516 branches, is India’s third-largest diversified NBFC.
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Analysts leaning towards LG
While market experts believe both IPOs have merit, they seem to be leaning towards LG. “In the current IPO frenzy, where investor capital is limited, careful selection becomes crucial to maximize return on investment,” said Prashanth Tapse, Sr VP Research Analyst at Mehta Equities.
“While Tata Capital’s IPO has attracted attention, LG Electronics presents a more compelling opportunity in terms of both growth potential and expected returns,” he said.
Echoing this view, Abhinav Tiwari, Research Analyst at Bonanza, said LG’s fundamentals offer superior visibility.
“LG Electronics India demonstrates a strong financial profile with FY25 ROE of 37% and ROCE of 43%, supported by its dominant position in consumer durables and robust 13% margins. The IPO is attractively priced and the company a clear market leader in home appliances with strong brand equity, dominant offline share, and consistent innovation, offers superior stability and profitability compared to peers”
Meanwhile, Shruti Jain, Chief Strategy Officer at Arihant Capital Markets disagreed with the above views, stating neither offers significant upside at this point. According to Jain, while valuations aren’t stretched, growth visibility is uncertain. In the current market, investors may find better opportunities in other listed names rather than expecting outsized returns from these two.
“Tata Capital is trading at around 4.2–4.3x post-money, leaving limited room for fresh investors. LG, on the other hand, trades at a premium to some of its global peers, but faces intense competition in India’s consumer durables market, particularly in the categories of TVs, ACs, and appliances.”
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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