LG Electronics IPO: LG Electronics India Gets SEBI Approval To Raise Around INR 15,000 Crore via Offer for Sale

LG Electronics India has received approval from the Securities and Exchange Board of India (Sebi) for its initial public offering (IPO). which is expected to be around Rs 15,000 crore. The company had filed its draft red herring prospectus (DRHP) with Sebi on December 6, 2024, and has now received the final observation from the regulator to proceed with the offering. The IPO consists solely of an offer for sale (OFS) of up to 10.18 crore equity shares by parent company LG Electronics Inc. The face value of each share is Rs 10.

LG Electronics India, a wholly-owned subsidiary of LG Electronics Inc., was established in 1997 and has been a market leader in India's home appliances and consumer electronics segment for 13 straight years (20112023) in offline sales by value, according to a Redseer Report cited in the DRHP. The company has a strong presence across multiple product categories, including refrigerators, washing machines, panel TVs, inverter air conditioners, and microwaves. The offline channel, which makes up around 80% of India's consumer electronics market (excluding mobile phones), has been a key contributor to its dominance.

Financially, LG Electronics India has outperformed many of its listed peers, including Havells India, Voltas, Whirlpool of India, and Blue Star. The company posted a revenue of Rs 21,352 crore in fiscal 2024, up from Rs 19,868.24 crore in the previous fiscal. Its profit after tax rose 12.35% to Rs 1,511.07 crore from Rs 1,344.93 crore. Globally, LG Electronics is recognised as the leading single-brand home appliances company by revenue in 2023, according to Redseer. The company serves both B2C and B2B markets, offering installation, repair, and maintenance services for its products. The IPO is being managed by Morgan Stanley India, JP Morgan India, Axis Capital, BofA Securities India, and Citigroup Global Markets India. KFin Technologies is the registrar for the issue.