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IPO Details
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IPO Timeline
Issue Highlights
Initial public offer of up to 101,815,859 equity shares of face value of Rs. 10 each (Equity Shares) of LG Electronics India Limited (The Company or the Issuer) for cash at a price of Rs. [] per equity share (Including a Premium of Rs. [] per Equity Share) (Offer Price) aggregating up to Rs. [] crores through an offer for sale (The Offer) of up to 101,815,859 equity shares of face value of Rs. 10 each aggregating up to Rs. [] crores by LG Electronics Inc. (Selling Shareholder) (The Offer for Sale and such equity shares, the Offered Shares). The offer shall constitute 15% of the post-offer paid-up equity share capital of the company. The face value of the equity shares is Rs. 10 each. The offer price is [*] times the face value of the equity shares. The price band and the minimum bid lot size will be decided by the company,
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$ 1,415 billion by FY28, fuelled by increased disposable incomes, a shift toward organized retail, and robust growth in e-commerce. By FY28, the market is expected to reach ₹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.
Strengths of LG Electronics IPO
Leading market share in the home appliances and consumer electronics industry in India with #1 market share across key product categories
Parentage of LG Electronics, which is the leading single-brand global home appliances player in terms of market share by revenue in CY 2023.
They have one of the largest in-house production capacity (excluding mobile phones) amongst leading home appliances and consumer electronics players in India as of June 30, 2024, according to the Redseer Report.
Risks of LG Electronics IPO
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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.
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Increase in the prices of raw materials required for their operations could hurt the business.
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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.
All Financial Information about LG Electronics India IPO
Particulars (in Rs. million)
Particulars (in Rs. million)
Comparison with peers
| Company/Parameters | Revenue from operations | EPS (Diluted) | NAV | P/E ratio | RoNW |
|---|---|---|---|---|---|
LG Electronics | 21352.000 | 22.26 | 55.04 | [.] | 40.45 |
Havells | 18590.000 | 7.62 | 118.83 | 85.48 | 17.06 |
Voltas | 12481.210 | 20.28 | 176.93 | 221.53 | 4.24 |
Whirlpool | 68,29.790 | 17.11 | 302.94 | 111.65 | 5.84 |
Blue Star | 9685.360 | 20.77 | 127.06 | 92.21 | 15.86 |
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.
LG Electronics India Limited Company Profit & Loss
| Parameter/Year | FY22 | FY23 | FY24 |
|---|---|---|---|
Total income | 17038.010 | 20108.584 | 21557.118 |
Profit before tax | 1631.563 | 1820.329 | 2037.117 |
Profit after tax | 1174.733 | 1344.930 | 1511.048 |
EPS | 17.31 | 19.81 | 22.26 |
EBITDA | 1665.012 | 1895.115 | 2224.873 |
Cash Flow Statement
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Profit before tax including discontinuing operations | 1589.764 | 1816.129 | 20,37.117 |
Cash flow from operating activities | 597.866 | 18,70.828 | 16,65.461 |
Cash flow from investing activities | 77.505 | 274.000 | 20.457 |
Cash flow from financing activities | 2326.505 | 2560.731 | 21,85.253 |
Cash and cash equivalent at the end of the year | 3726.856 | 27,62.588 | 2222.605 |
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
LG Electronics India IPO FAQs
What is the LG Electronics IPO?
The LG Elctronics IPO has an issue size of ₹XX crores. The IPO opens for subscription on XX/YY/ZZZZ and closes on XX/YY/ZZZZ.
Who is the Registrar for LG Electronics IPO?
Kfin Technologies Limited is the registrar for this IPO.
