LG Electronics IPO: LG Electronics India’s long -awaited IPO is finally going to open on 7 October. This IPO will be worth Rs 11,600 crore, in which Korean original company is going to sell 10.18 crore shares. Investors can take advantage of this opportunity as it is considered to be one of the biggest IPOs of this year. The last date of IPO is 9 October and for this anchor investors will raise funds on the first day i.e. 6 October. The company has fixed a price band of Rs 1,080 – Rs 1,140 on a values of Rs 77,500 crore for IPO.
Number one position for 13 years
LG Electronics is a very popular brand in India. In India’s home appliances and consumer electronics market, this company is at the forefront of other products except mobile phones. According to Redseer’s report, the company has been at the number one position in India’s offline channel for 13 consecutive years.
Earlier, the company had postponed its IPO due to the uncertainty of the market, but now it has been resumed after the improvement of the market. The money raised through this IPO will not go to the company but to the Korean original shareholder as it is being released as an offer for sale (offs).
LG’s status and competition in the market
LG has earned the highest revenue and EPS in FY 2024 in a tough competition with big companies like Havels, Voltas, Whirlpool of India and Blue Star. The market for home appliances and electronics in India has increased at a rate of about 7% from 2019 to 2024 and this increase is expected to reach 11% in the coming five years.
LG sells its products in India and abroad for both B2C (Customer) and B2B (Business). The company also serves for installation, repair and maintenance of its products. LG’s grip in products like washing machines, refrigerators, TVs, air conditioners and microwaves in India is strong.
Indication of financial strength
The company acquired a revenue of Rs 21,352 crore in FY 2024, which is about 7.5% more than the previous year. The company’s profit due to tax has also increased by 12% to Rs 1,511 crore. These figures reflect LG’s strong financial position and market hold.
The book running lead manager of this IPO is Morgan Stanley India, JP Morgan India, Axis Capital, Bofa Securities and Citigroup Global Markets. Caffeine Technologies are the registrar of this issue.