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LG Electronics India is preparing for a major initial public offering (IPO) after receiving approval from SEBI. The IPO, set to be one of India's largest and possibly the fifth-biggest on record, will raise around INR 15,000 crore through an offer-for-sale (OFS) of 10.18 crore shares by parent company LG Electronics Inc. Proceeds will go to the South Korean parent. LG India's strong financials INR 21,352 crore in revenue and 12% profit growth in FY24 reflect its leadership in home appliances. The IPO aligns with India's fast-growing consumer electronics market, forecast to reach INR 5.69 lakh crore by 2028.
LG Electronics India is gearing up for a highly anticipated initial public offering (IPO) that has sparked significant interest across financial markets. The company recently secured regulatory clearance from the Securities and Exchange Board of India (SEBI) to move forward with its IPO plans, which is poised to become one of the largest offerings in India this year, potentially ranking as the fifth-largest on record. Advertisement
The IPO will consist entirely of an offer-for-sale (OFS) of nearly 10.18 crore equity shares offloaded by its parent entity, LG Electronics Inc. As a result, the proceeds from this transaction will flow directly to the South Korea-based parent company, rather than being retained by LG Electronics India.
The offering is expected to raise approximately INR 15,000 crore (equivalent to around USD 1.8 billion), with shares carrying a face value of INR 10 each. Analysts believe this could propel LG Electronics India's market valuation to as high as USD 15 billion, underscoring the strong appetite from investors and the company's growth trajectory in India's fast-expanding consumer electronics space.
Financially, LG Electronics India has demonstrated steady momentum. For the financial year 2024, it recorded revenues of INR 21,352 crore, a rise from INR 19,868 crore in the previous year. Profit after tax also saw a 12% year-on-year increase, reaching INR 1,511 crore. This performance reinforces LG's leadership in the Indian market, particularly in home appliances like refrigerators and washing machines, where it frequently surpasses rivals such as Samsung and Whirlpool.
The Indian consumer electronics and appliances sector provides fertile ground for such an initiative. The industry, currently valued at INR 3.23 lakh crore in the first half of 2024, is forecast to surge to INR 5.69 lakh crore by 2028, translating to a compound annual growth rate (CAGR) of approximately 15%. This expanding market underpins LG's move to list in India, allowing it to tap into heightened investor optimism and the country's growing consumption trends.
Prominent financial institutions such as Morgan Stanley India, JP Morgan India, Axis Capital, BofA Securities, and Citigroup Global Markets have been appointed as book-running lead managers to oversee the IPO process.
This planned listing marks a pivotal step for LG Electronics India as it seeks to further consolidate its leadership in one of the world's fastest-growing consumer markets, leveraging its strong brand equity and sound financial standing.
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