LG Electronics (LG), the market leader in several categories of home appliances in India, is coming with a ₹11,607-crore IPO (entirely OFS) that will be open from October 7 till October 9. At the higher end of the IPO price band (₹1,140), the company is valued at ₹77,380 crore or 35 times FY25 earnings. Peer valuations are much higher and in the range of 42-65 times FY25 earnings.

In this context, four factors work in favour of the IPO — one, LG’s dominant position in the Indian market; two, growth opportunity in the Indian market, as demand for consumer durables in India is expected to strengthen with rising incomes; three, solid track record of execution over the last two-and-a-half decades; and four, reasonable valuation. Hence, investors with a long-term perspective can subscribe to t

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