From today, LG Electronics India’s IPO is being launched.
After about a year, another Korean company is going to enter India’s stock market. After Hyundai, the IPO of LG Electronics India is going to be launched. Even though Hyundai is the largest IPO in the history of India, but the size of the IPO of LG Enecronics is also not small. That too when the IPO of Tata Capital is in front in front and the stock market has increased slightly in the way. On the other hand, India is currently going through the festive season. Because of which the big question of common investors should be whether they should invest their money in the stock market or prepare for festivals.
By the way, LG has another big question. That is whether the Korean company will be able to repeat the history of its own compatriot company Hyundai. There is also a reason for that. Hyundai is one of the guinea selected companies, who are giving a lot of returns to investors even after more than 10 thousand crore rupees. By the way, LG also believes that the way India’s investors had expressed confidence in Hyundai, they will also express the same trust in him. Let us also tell you that the special things of LG Electronics IPO…
LG’s IPO is starting today
The domestic device and consumer electronics maker LG Electronics India (LGEI) is planning to raise 11,607 crore through offer for sale. After the IPO, the promoter’s stake will decrease from 100 percent to 85 percent. The company’s revenue, abita and abita margin are higher than the competitors. Apart from this, its return on net worth for FY 2025 was 37.1 percent, which is much higher than 9-19 percent of the competitors. The valuation of IPO is also very attractive. Given these factors, investors can consider this IPO from a long -term perspective.
What is the special thing of the company’s IPO?
- The company’s IPO is starting from 7 October i.e. today, which will continue till 9 October. This IPO is fully based on OFS.
- The company has fixed the price band of its IPO at Rs 1,080-1,140. Due to which the company’s issue size is Rs 11,607 crore.
- Due to this IPO, the company’s market cap can be Rs 77,380 crore. The face value of the company’s shares is 10 rupees.
- To invest in the company’s IPO, investors will have to invest in a lot of at least 13 shares.
- On the other hand, the company has fixed a 35 percent stake in this IPO for retail investors.
What is the company’s business?
LG Electronics India, which was founded in 1997 as a fulfillment company of Korea’s LG Electronics, is a pioneer in terms of market share in the main home appliances and consumer electronics, except mobile phones, except mobile phones. It is estimated that the Indian consumer sustainable commodity sector will increase by 14 per cent annually between 2024 and 2029, which is an auspicious sign for LGEI.
It has manufacturing plants in Noida and Pune, whose capacity uses are 81 per cent and 73 per cent respectively. The company is setting up a new manufacturing unit unit in Andhra Pradesh, which is expected to be operational by the financial year 2027. Initially it will focus on production of air conditioner and air conditioner compressors, and then will build a washing machine and refrigerator in the future. By June 2025, it also exports products to 47 countries in Asia, Africa and Europe.
What is the company’s financial condition
Between FY 2023 and 2025, the company’s revenue and profit increased annually by 10.8 per cent and 28 per cent to Rs 24,366.6 crore and Rs 2,203.4 crore respectively. If we talk about Ebita margin, then the financial year 2023 increased from 9.5 percent to 12.8 percent in FY 2025. The company pays royalty to the original company for the brand name, which has been less than 2 percent each year in three years by FY 2025. Companies usually pay 2-3 percent royalty to the original company.
Cold start of Tata Capital
On the other hand, IPO of non-banking finance company Tata Capital Limited received 39 percent dialects on the first day of bid on Monday. According to the information available on NSE, the IPO received bids for 12,86,08,916 shares against 33,34,36,996 shares. In the case of QIB, 52 percent of the subscriptions were received, while the category of retail individual investors (RIIs) received 35 percent dialects. The prescribed portion for non-institutional investors received 29 percent of the subscriptions. Tata Capital on Friday raised Rs 4,642 crore from 68 domestic and global institutional investors. The company’s public issue of Rs 15,512 crore will end on October 8 and its price limit is Rs 310-326 per share.