Upcoming IPO: LG Electronics India likely to file updated DRHP early next month; four key things to know

Upcoming IPO: LG Electronics India, the Indian branch of the South Korean conglomerate, is anticipated to present the updated draft red herring prospectus (UDRHP) for its ₹15,000 crore IPO to the market regulator SEBI early next month, as per a report from Financial Express (FE) citing its sources. The company plans to launch its shares on Dalal Street later that same month.

The firm has already hosted roadshows to attract investors for the IPO. It obtained approval from SEBI for the IPO back in March of this year. According to the FE report, the company has conducted roadshows to engage potential investors for the IPO.

The IPO aims to generate around ₹15,000 crore, which includes an offer for sale from its parent company. LG Electronics intends to divest a 15% stake in its Indian operations.

The IPO is expected to enhance the company's expansion into other Asian and African markets, reducing its reliance on North America following the recent announcement of substantial tariffs on imports by the USA last week.

In addition, LG Electronics is set to commence the construction of its third consumer electronics manufacturing facility in India, which will be situated in Sri City. At present, it operates two manufacturing plants in the country — one in Noida and another in Ranjangaon, Maharashtra. The company is a significant player in India’s consumer durables sector, competing with brands such as Samsung, Voltas, and Whirlpool.

LG Electronics India IPO - Four key things to know

Promoter details

According to the DRHP, the company's promoter possesses 678,772,392 equity shares with a face value of ₹10 each. This total includes six equity shares of ₹10 each, held one by each of the following individuals: Ajay Rambal, Atul Khanna, Gurpinderjeet Singh, Kapil Mehra, Sandeep Kumar, and Vishal Rastogi, acting on behalf of and as nominees for LG Electronics Inc. This entire shareholding represents 100.00% of the issued, subscribed, and paid-up Equity Share capital of the Company.

Peer

As per the DRHP, the company's listed peers are Havells (with a P/E of 85.48), Voltas (with a P/E of 221.53), Whirlpool (with a P/E of 111.65), and Blue Star (with a P/E of 92.21).

Financials

As per reports, LG Electronics recorded its highest revenue to date in India for FY24. The revenue from its Indian business increased by 14.8%, reaching $2.8 billion, as indicated by regulatory filings. Additionally, its net profit in India rose by 43.4% compared to the previous year.

Company details

The company boasts one of the most extensive product ranges among top home appliance and consumer electronics brands (excluding mobile phones) in India as of June 30, 2024, based on the Redseer Report. The firm markets products to both B2C and B2B customers, both within India and internationally. Additionally, the company provides installation services along with repair and maintenance services for all their offerings.

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