LG India files papers with SEBI for ₹15,000 crore IPO
What's the story
LG Electronics India, the Indian arm of South Korean tech giant LG Electronics, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).
The company plans to raise ₹15,000 crore via an initial public offering (IPO).
This comes within two months of Hyundai Motor India's ₹27,870 crore IPO—the largest in India.
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IPO to offload up to 101.8 million shares
LG Electronics India's proposed IPO is an offer for sale (OFS) to offload up to 101.8 million equity shares, or a 15% stake in the company.
It would become India's fifth-largest issue, ahead of Coal India's ₹15,200 crore IPO in 2010.
The announcement of this IPO comes amid political unrest in South Korea after President Yoon Suk Seol's brief declaration of emergency marital law.
IPO management
Who are the book-running managers?
Morgan Stanley India, JP Morgan India, Axis Capital, BofA Securities India, and Citigroup Global Markets India have been appointed the book-running lead managers for the IPO.
LG Electronics competes with both global and Indian companies such as Voltas, Havells, Haier, Whirlpool, Godrej, Blue Star, Philips, Samsung and Sony in the Indian market.
Market standing
Market position and financial performance
In the Indian market, LG Electronics is the second-largest player in home appliances and consumer electronics after Samsung India Electronics.
The company posted revenue from operations at ₹21,352 crore for FY24.
"We are the market leader in India in major home appliances and consumer electronics (excluding mobile phones) in terms of volume for the three-month period ending June 30, 2024," LG Electronics India said in its DRHP.
Industry leadership
Dominance and future market growth
LG Electronics India has retained its number one position in the industry for 13 consecutive years (CY2011-CY2023) on the basis of value market share in the offline channel in India, as noted in the Redseer report.
The company also said that India's appliances and electronics market has grown at about 7% in the last five years.
This growth rate is projected to accelerate to about 12% over the next five years with increased penetration of appliances/electronics across urban/rural areas.