LG Electronics IPO: LG Electronics India is set to enter the stock market with an Initial Public Offering (IPO).
The company has received approval from the Securities and Exchange Board of India (SEBI) to launch the IPO, which will be a complete Offer for Sale (OFS).
Under this offer, its parent company, LG Electronics Inc. from South Korea, will sell 10.18 crore equity shares.
IPO Details: Date and Price Band
The IPO’s opening date and price band have not been announced yet. The price details and launch date will be shared as the IPO launch draws nearer.
Experts estimate the IPO size could be around Rs 15,000 crore.
Lead Managers for the IPO
Several firms have been appointed as lead managers for the IPO, including:
Morgan Stanley India
JP Morgan India
Axis Capital
BofA Securities India
Citigroup Global Markets India
Additionally, KFin Technologies Limited will act as the registrar for the IPO.
LG Electronics India’s Journey and Market Presence
LG Electronics India is the Indian subsidiary of South Korean electronics giant LG Electronics Inc.
The company started operations in India in 1997. From 2011 to 2023, LG Electronics India has been the market leader in the home appliances and consumer electronics sector in India.
According to a report by RedSeer, it holds the largest market share in India’s offline market.
LG’s major listed competitors include Havells India, Voltas, Whirlpool of India, and Blue Star.
However, LG Electronics India has outperformed them in terms of revenue and earnings per share (EPS) in FY24.
Financial Performance and Market Position
In FY 2024, LG Electronics India reported a total revenue of Rs 21,352 crore, a growth from Rs 19,868.24 crore in FY 2023.
The company’s net profit increased by 12.35%, reaching Rs 1,511.07 crore, up from Rs 1,344.93 crore the previous year.
For the June 2024 quarter, the company recorded a revenue of Rs 6,408.80 crore and a net profit of Rs 679.65 crore.
Strong Network and Service Infrastructure
LG Electronics India boasts the largest distribution network in India, with 36,401 B2C touchpoints spread across both urban and rural areas.
The company operates 949 authorized service centers that handle installation, repair, and maintenance services.
LG also collaborates with 280 vendors, many of whom have worked with the company for over 11 years.
Market Leadership in Key Segments
LG Electronics India dominates several product categories in the market, including washing machines, refrigerators, panel TVs, inverter ACs, and microwaves.
As of June 2024, LG controls 80% of the offline market for these products.
