Home Appliance Giant LG India To Hit D-Street Soon—Gets SEBI Nod For Rs 15,000 Cr IPO

LG Electronics Inc. subsidiary LG Electronics India Limited has received final approval from the Securities and Exchange Board of India (SEBI) to raise Rs 15,000 Cr through an initial public offering (IPO) as per a report of PTI. The company stated that the targeted IPO amount is Rs 15,000 crore, however, the entire issue size has not been revealed yet by the company.

On December 6, 2024, the company submitted its IPO papers to Sebi. LG Electronics Inc. has decided to offer for sale up to 10.18 crore equity shares through the initial public offering (IPO), which has a face value of Rs 10 per equity share. The issue's registrar is KFin Technologies Limited, while the book-running lead managers are Morgan Stanley India Company Private Limited, J.P. Morgan India Private Limited, Axis Capital Limited, BofA Securities India Limited, and Citigroup Global Markets India Private Limited.

The company's revenue for fiscal 2024 was Rs 21,352 crore, up from Rs 19,868.24 crore for fiscal 2023. During the same period, profit after tax jumped from Rs 1,344.93 crore in FY23 to Rs 1,511.07 crore in FY24, a 12.35% growth. Revenue was Rs 6,408.80 crore for the three months that ended on June 30, 2024, while profit after tax was Rs 679.65 crore.

The draft red herring prospectus (DRHP) cites the Redseer Report, which states that LG Electronics India Limited led the Indian market in terms of volume for the three months ended June 30, 2024, for key home appliances and consumer electronics (apart from mobile phones). Founded in 1997, LG Electronics India is a subsidiary of LG Electronics Inc., and according to a Redseer Report cited in the DRHP, it has held the top spot in the Indian consumer electronics and home appliances market for 13 years (2011-2023) by value market share in the offline channel.

Microwaves, washing machines, refrigerators, panel TVs, and inverter air conditioners are just a few of the product categories in which the corporation dominates the market. The Redseer Report states that for the six months that ended on June 30, 2024, these items held a sizable portion of the offline channel, which accounts for around 80% of the value of India's primary consumer electronics and home appliance industry (excluding mobile phones). According to the Redseer Report, LG Electronics is the top single-brand home appliance manufacturer in the world by revenue in 2023. The firm provides same-day product installation, repair, and maintenance services to both B2C and B2B sectors in India and abroad.

Having worked in India for 27 years, LG Electronics India has the largest distribution network among its competitors, with 36,401 B2C touchpoints across both urban and rural areas. 949 authorised service centres around the country provide its after-sales services, which are backed by a vast network of 280 vendors with an average relationship duration of 11 years as of June 30, 2024.