The Indian financial landscape is poised for a significant shift with the upcoming LG Electronics India IPO. Recently, the market regulator SEBI has granted the necessary approvals, allowing this prominent subsidiary of South Korea’s LG Electronics to take the next big step in its growth trajectory.
Key Highlights of the LG Electronics India IPO
With SEBI’s green light, LG Electronics India is preparing for its anticipated market entry. The company submitted its Draft Red Herring Prospectus (DRHP) to SEBI on December 6, 2024, and is now ready to move forward. This IPO will consist entirely of an Offer for Sale (OFS), encompassing up to 10.18 crore equity shares with a face value of ₹10 each. Importantly, since this is a complete OFS, no new capital will be generated, and the entire proceeds will benefit its parent company, LG Electronics Inc..
LG Electronics: A Household Name and Market Leader
LG Electronics India has established itself as a formidable presence in the consumer electronics sector. According to the Redseer Report referenced in its DRHP, the company has maintained its status as the market leader in the home appliances and consumer electronics segment for an impressive 13 years (2011–2023), based on value market share in offline retail.
- Product Range: LG’s product line includes:
- Refrigerators
- Panel TVs
- Inverter air conditioners
- Microwaves
This diverse portfolio ensures that LG remains a staple in households across India.
Financial Performance Overview
Looking at the company’s financial metrics, LG Electronics India recorded a revenue of ₹21,352 crore for the fiscal year 2024, up from ₹19,868.24 crore in 2023. This growth reflects a robust financial health, with a 12.35% increase in profit after tax, rising to ₹1,51.07 crore from ₹1,344 crore in the previous year.
For the quarter ending June 30, 2024, LG India reported impressive figures with a revenue of ₹6,408.80 crore and a net profit of ₹679.65 crore, underscoring the company’s strong market position.
Looking Ahead: The IPO Outlook
With SEBI’s endorsement in place, LG Electronics India is expected to announce the specific launch date for its IPO shortly. The offering will be managed by a consortium of financial institutions, including Morgan Stanley India, JP Morgan India, Axis Capital, BofA Securities India, and Citigroup Global Markets India. The registrar for this significant issue will be KFin Technologies.
As LG Electronics India prepares for this exciting phase, investors and market watchers are keenly anticipating its impact on the Indian stock market and consumer electronics landscape.
