In a significant development for the Indian capital markets, LG India has received the Securities and Exchange Board of India (SEBI) nod to proceed with its highly anticipated initial public offering (IPO). The regulatory body issued its observation letter on 13 March 2025, marking the final regulatory clearance needed before launching the public offering.
LG India IPO: Offer Details
The IPO is structured as an Offer for Sale (OFS), with LG Electronics Inc., the promoter and parent company, set to divest up to 10,18,15,859 equity shares of face value INR 10 each. Axis Capital is the coordinating lead manager for the issue, and the draft red herring prospectus was received by SEBI on 06 December 2024.
Reknown Name in the Market
LG India is the market leader in home appliances and consumer electronics (except mobile phones) with leadership in key categories like washing machines, refrigerators, panel TVs, inverter ACs, and microwaves. As per the Redseer Report, the company has been the number one in value market share in offline channel for 13 years in a row from 2011 to 2023.
Manufacturing Prowess and Supply Chain
The company has two manufacturing units in Noida and Pune with a combined capacity of 13.99 million products as of FY 2024. LG Electronics India is also planning to expand its capacity by setting up a new unit in Andhra Pradesh. The company’s localized supply chain strategy is another highlight, with 58.29% of raw materials sourced from domestic suppliers as of the three months ended 30 June 2024.
Extensive Distribution and Service Network
LG Electronics India has the largest distribution network among leading home appliances and consumer electronics brands, with 36,401 B2C touchpoints and a robust after-sales service network comprising 949 service centers and 12,590 engineers across India. The company also has a presence in 54 countries across Asia, Africa, and Europe.
Promoter Shareholding
As of the date of the DRHP, LG Electronics Inc holds 100% equity in LG India. The shareholding pattern of LG Electronics Inc as of 30th September 2024 is 33.67% held by LG Corporation, 7.48% by National Pension Service of Korea, 0.47% treasury shares and 58.38% by public shareholders.
Financials At A Glance
The company reported strong financials in Fiscal 2024 with an EBITDA margin of 10.42% and a net profit margin of 7.01%. The return on capital employed stood at an impressive 45.31%, reflecting its capital-efficient business model.
Lead Managers and Registrar
The Book Running Lead Managers for the IPO include:
- Morgan Stanley India Company Private Limited
- J.P. Morgan India Private Limited
- Axis Capital Limited
- BofA Securities India Limited
- Citigroup Global Markets India Private Limited
- KFin Technologies Limited is acting as the registrar to the offer.
Conclusion
With SEBI approval in place, LG Electronics India is now ready to tap the Indian capital markets and offer investors an opportunity to be a part of one of India’s most trusted and leading consumer electronics brands. The company’s robust financials, market leadership, and strong parentage are expected to generate huge interest among investors once the IPO opens for subscription.
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