1. IPO Snapshot — Key facts at a glance

Note: The dates and numbers above are taken from the draft offer details supplied to investors. Always cross-check with the final red herring prospectus (RHP) and the registrar’s allotment portal on the dates mentioned.

2. Company Overview — What LG Electronics India does

LG Electronics India is the consumer-facing subsidiary of the global LG Electronics group. It sells and services a wide range of consumer electronics and home appliances. The company’s portfolio broadly comprises two segments:

• Home Appliances & Air Solutions — Refrigerators, washing machines, air conditioners, microwave ovens and kitchen appliances.
• Home Entertainment — Televisions and audio systems.

The company follows a “g-local” strategy — global products adapted for local tastes, price-sensitivities and climate conditions. Manufacturing is largely localized in India with two major plants (Noida and Pune) that serve domestic demand and some exports.

3. Manufacturing, Distribution & Service Network

LG Electronics India operates a wide footprint across manufacturing, warehousing and after-sales service:

• Two principal manufacturing facilities (Noida and Pune) — making a high percentage of products locally.
• Approximately 25 warehouses and 36,000+ B2C touchpoints across retail and modern trade.
• More than 12,500 service engineers and 949 service centers ensuring support and warranty fulfilments.

This large on-ground presence is a competitive moat: it improves availability, shortens delivery lead time and reinforces brand trust through after-sales service — a crucial factor in durable goods purchases.

4. Market Opportunity — Why India matters

India is one of the fastest-growing consumer appliance markets in the world. Key demand drivers include:

• Rising disposable incomes and continued urbanisation.
• Replacement cycles for durable goods (refrigerators, ACs, TVs) increasingly shortening due to technology upgrades.
• Government incentives — electrification, housing and rising consumer finance availability.

For LG, capturing a higher share of replacement demand and tier-II/tier-III cities is a major growth runway. The company’s localized manufacturing helps maintain price competitiveness while preserving margins.

5. Financial Snapshot — illustrative figures & how to read them

Important: Below table is an illustrative example to show how investors typically read financials around an IPO. Replace these numbers with official audited results from the offer document before making investment decisions.

How to interpret: Look for revenue growth trajectory, margin stability and free cash flow generation. For appliance businesses, margins can be cyclical due to commodity prices (steel, copper) and foreign-exchange swings for imported components.

6. Use of Proceeds & Offer Structure

Most IPOs use proceeds for a mix of the following — check the prospectus for exact allocation:

• Repayment / prepayment of certain borrowings or inter-corporate deposits to strengthen the balance sheet.
• Capex — to expand manufacturing, R&D or warehousing.
• General corporate purposes — working capital and expansion of service network.
• Offer for sale (OFS) by the promoter or existing investors — which does not raise fresh equity but transfers existing shares.

7. Valuation & Peer Comparison (framework)

Valuing a consumer appliance company often uses multiples such as EV / EBITDA and P / E. Below is a sample peer-comparison table (illustrative). Always compare apples-to-apples — adjust for fiscal year, extraordinary items and one-off gains or losses.

Investor action: Calculate implied market cap at the IPO price band and compare with peers on EV/EBITDA and P/E. Be mindful that listed peers might have different product mix and margins.

8. Investment Merits — Why investors may like the IPO

• Strong brand equity: LG is a well-known brand with high recall and trust for durable goods.
• Local manufacturing: Cost control and favourable government incentives for local production.
• After-sales network: Large service footprint that supports repeat purchases and warranty monetisation.
• Parent support: Access to global R&D, designs and technology transfer from LG Corporation.
• Growth runway: Opportunities in tier-II/III cities and rural electrification.

9. Key Risks — What can go wrong

• Intense competition from global and local players eroding pricing power.
• Concentration risk — manufacturing in only two plants exposes the company to local disruptions.
• Commodity and input-cost volatility impacting margins.
• Currency fluctuations affecting imported component costs.
• Rapid technology change (e.g., smart TVs, connected appliances) requiring ongoing capex in R&D.

10. How to Apply — Step by step (UPI / ASBA)

Retail investors can apply through their broker’s IPO interface or banking app supporting ASBA / UPI. Below are both routes explained:

UPI (Retail & demat-linked flows)

1. Log in to your broker / bank’s IPO application page.
2. Choose the LG Electronics IPO and select the portion (Retail / HNI / NII) you are applying under.
3. Enter number of lots — each lot is 13 shares. Bid within the price band (₹1,080 — ₹1,140).
4. Provide your UPI ID (e.g., name@bank). A mandate will be created with the bank; the amount will be blocked from your account until allotment.
5. Confirm and submit. You will receive a mandate request on your UPI app — approve to confirm the bid.

ASBA through bank (alternate route)

1. Log in to your bank’s netbanking portal that supports ASBA.
2. Navigate to ‘Investments’ > ‘IPO’ > ‘Apply’.
3. Select the IPO, input number of lots and price, and authorise blocking of funds in your account. The money is debited only upon allotment.

11. Allotment, Refunds & Listing — what to expect

• Allotment date: Typically declared a day or two after the issue closes. In this IPO the allotment is expected on 10th October 2025 (confirm on registrar site).
• Refunds: For applicants not allotted, UPI mandates are canceled or ASBA block released; allotted applicants will have shares credited to demat account by T+2/T+3 depending on process.
• Listing: Shares are expected to list on 14th October 2025 — intraday volatility can be high on listing day. Use limit orders to avoid unfavourable fills.

12. Taxation — quick primer for IPO gains in India

Tax treatment depends on whether you hold shares as short-term or long-term capital assets:

• Short-term capital gains (STCG): If sold within 12 months of allotment and the stock is listed on recognised stock exchanges, STCG is taxable at 15% (plus cess & surcharge where applicable) for listed equity subject to conditions.
• Long-term capital gains (LTCG): If sold after 12 months, gains above ₹1 lakh are taxed at 10% without indexation. (As per current tax rules — always verify with a tax advisor or the latest tax notifications.)

Note: Tax rules change. This is a summary and not tax advice. Consult a chartered accountant for personalised guidance.

13. Practical Examples & Calculators

Below are quick worked examples that you can adapt:

Example 1 — Single lot retail bid

Example 2 — Multiple lots (3 lots)

Remember to account for brokerage, securities transaction tax (STT) and taxes while calculating net returns.

14. Retail Allotment Mechanics — simple explanation

When demand exceeds shares available for retail investors, shares are allocated by lottery or proportional method depending on the rules in the offer document. Typical steps:

1. Collect total retail bids & compute oversubscription ratio.
2. Lottery or proportional allotment performed by registrar; small retail applications often have higher chance in smaller issues, while very large issues are highly oversubscribed.
3. Allotment is finalised and reflected on the registrar’s portal and stock exchanges.

15. Checklist before you apply

• Have an active demat account & UPI ID linked with the account.
• Confirm your KYC, PAN and bank details are updated and correct.
• Decide your investment horizon — listing pop vs long-term ownership.
• Check the prospectus for related-party transactions, contingent liabilities and capex plans.
• Apply an amount you can afford to lock until allotment; don’t overextend for listing speculation.

16. FAQs — quick answers

17. Final takeaways — a balanced view

LG Electronics India’s IPO offers exposure to a leading consumer-electronics brand with deep distribution and manufacturing advantage in India. For long-term investors who believe in the Indian consumption story and appliance upgrades, the company’s scale and brand make it a credible candidate. Speculative investors seeking quick listing gains should carefully weigh the IPO’s valuation and potential listing-day volatility.

Always cross-check numbers in the final prospectus and consult a financial advisor if in doubt.