LG Electronics IPO To Open On Oct. 7; South Korean Parent To Sell 15% Stake
LG Electronics India's initial public offering is set to open on Oct. 7 and close on Oct. 9, according to the red herring prospectus filed on Tuesday. Through the IPO, the South Korean parent — LG Electronics Inc. — will offload 10.2 crore shares.
The stake sale by the parent entity will represent 15% of the post-offer stake in the Indian arm — valuing the country's second-largest electronics major at around $12.5 billion.
LG Electronics India received SEBI's nod for an IPO in March. Morgan Stanley India Co., JPMorgan India Pvt., Axis Capital Ltd., BofA Securities India Ltd. and Citigroup Global Markets India Pvt. are the bankers for the IPO.
A successful debut will make LG India the second South Korean company to tap the Indian stock market, following the listing of Hyundai Motors India Ltd. in October 2024. The company's listed peers include Havells India Ltd., Voltas Ltd., Whirlpool of India Ltd. and Blue Star Ltd.
LG Electronics India operates in two key segments: home appliances and air solutions and home entertainment. It has firmly established itself as the market leader in major home appliances and consumer electronics, excluding mobile phones.
The company holds the top position in India across product categories such as washing machines, refrigerators, panel TVs, inverter air conditioners, and microwaves as per the value market share in the offline channel, stated the draft red herring prospectus. This dual focus on high-demand product categories and offline market strength has positioned LG as a go-to brand for Indian consumers.
While the company made a profit of Rs 1,511 crore in the fiscal 2024, it paid a much more liberal dividend of Rs 2,093 crore at Rs 185 per share.
In the first quarter of the current fiscal, the company reported a revenue of Rs 6,409 crore and a profit of Rs 680 crore. Operating income stood at Rs 958 crore and its margin against the top line came up to 14.94%.
As of June 30, the company's cash balance stood at Rs 3,606 crore.
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