LG Electronics India IPO

Industry Outlook

India’s retail sector is undergoing rapid expansion and has grown at a CAGR of ~6% in the last 5 years. It is projected to grow at ~9% to reach US$ 129 trillion (US$ ~1.55 trillion) at an expected CAGR of ~3%.

Company Information

LG Electronics is the market leader in India in major home appliances and consumer electronics (excluding mobile phones) in terms of volume for the six-month period ending June 30, 2024, as per the Redseer Report.

Risks of LG Electronics IPO

• LG Electronics India is supported by LG Electronics (the global conglomerate), their Promoter, in various aspects of the business. LG Electronics pays royalties to them under the License Agreement (defined below). Any adverse change in the relationship with LG Electronics and the companies in the LG group could hurt the business.

• Increase in the prices of raw materials required for their operations could hurt the business.

• Their top-five suppliers and top-10 suppliers contributed 21.45% and 31.44% of the total purchases of raw materials in the three months ended June 30, 2024, respectively. Further, they source certain raw materials from suppliers in select countries outside India. Any interruption in the availability of raw materials or supplier misconduct could hurt the business.

IPO Registrar and Book Running Lead Managers

Morgan Stanley India Private Limited

J.P. Morgan India Private Limited

Axis Capital Limited

BofA Securities India Limited

Citigroup global markets India Private Limited

Registrar for the IPO is Kfin Technologies Limited

Business Model

Sale of consumer products within and outside India. They also provide rendering, installation and after-service sales in India.

Sale of home appliances and air solutions: refrigerators, washing machines, air conditioners, water purifiers, air purifiers, dishwashers, microwave ovens, compressors and ovens.

Company Growth Trajectory

The company’s revenue from operations has grown from ₹169,65.725 crores in FY22 to ₹21352.000 crores in FY24, reflecting an increase of 25%. The PAT has also increased from 11,74.733 crores in FY22 to 1511.068 in FY24, reflecting a change of 28.63%.

Company Market Position

LG Electronics is a market leader in India in major home appliances and consumer electronics (excluding mobile phones) in terms of volume for FY24. LG Electronics has also been the top player in the market for 13 consecutive years.

How To Check Allotment Status of LG Electornics IPO?

You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar — Kfin Technologies Limited. To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Kfin Technologies Limited
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the Kfin Technologies Limited website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select LG Electronics from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status

How to Apply for LG Electronics India IPO?

To apply for LG Electronics India IPO:

• Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.