LG Electronics India has secured the green light from the Securities and Exchange Board of India (SEBI) for its upcoming initial public offering (IPO), as confirmed by industry insiders. This IPO is expected to raise approximately ₹15,000 crore, marking a significant milestone in the company’s growth journey.
IPO Details and Market Significance
The company submitted its draft red herring prospectus (DRHP) to SEBI in early December, paving the way for this major financial move. Upon completion, LG’s IPO is set to be the fifth largest in India, following the notable offerings from Life Insurance Corporation, Hyundai Motor India, Paytm, and Coal India.
- IPO Size: Estimated at ₹15,000 crore
- Type: Entirely an offer for sale (OFS) of 101.8 million equity shares
- Face Value: ₹10 per share
- Parent Company’s Dilution: 15% reduction to 576.9 million shares
Despite reaching out for comments, LG has yet to respond to inquiries before publication.
New Initiatives and Expansion Plans
In addition to the IPO, LG is gearing up to launch an appliance rental service nationwide. This initiative, which was trialed in select exclusive stores last year, aims to cater to premium customers and enhance overall consumer experience. The company stated:
“Our plan is to expand this service throughout our distribution network, enabling us to offer unique services that boost customer satisfaction and drive sales.”
Furthermore, LG is also investing in its manufacturing capabilities by establishing a new factory in Andhra Pradesh. This facility will be the third of its kind in India, complementing existing plants in Greater Noida, Uttar Pradesh, and Ranjangaon, Maharashtra. Since entering the Indian market in 1997, LG has been a formidable competitor to brands like Whirlpool and Samsung.
Market Insights and Future Growth
The Indian appliances and electronics sector is projected to soar to ₹10 lakh crore (approximately $120 billion) by 2028, fueled by various growth drivers. Over the past five years, this market has expanded at around 7%, with expectations of acceleration to nearly 12% in the coming years.
LG’s planned IPO will mark the second entry of a South Korean giant into the Indian stock market in less than six months. In October, Hyundai Motors Company made headlines by launching its Indian arm with a staggering $3.3 billion (around ₹27,000 crore) IPO, setting a record for the largest offering in the nation.
As LG Electronics India prepares for this pivotal moment, market watchers are keenly observing how this will shape the competitive landscape in India’s burgeoning appliances and electronics market.
