LG Electronics India has received approval from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering (IPO). The IPO comprises an offer for sale consisting of up to 10.18 crore equity shares by its parent company, LG Electronics. This move marks a significant step for LG Electronics India, a subsidiary established in 1997, which has been a consistent leader in the Indian home appliances and consumer electronics market.
LG Electronics India reported a revenue of Rs 21,352 crore for the fiscal year 2024, up from Rs 19,868.24 crore in 2023, and a profit after tax of Rs 1,511.07 crore, reflecting a 12.35 per cent increase from the previous fiscal year. LG Electronics India has maintained its dominance in product categories such as washing machines, refrigerators, panel televisions, inverter air conditioners, and microwaves. It has remained the market leader for 13 consecutive years by value market share in the offline channel, according to the Redseer Report.
Globally, LG Electronics is recognised as the leading single-brand home appliances company by revenue for 2023. The company boasts a vast distribution network with 36,401 B2C touchpoints and 949 authorised service centres across India. These facilitate same-day installation, repair, and maintenance services, enhancing customer satisfaction and operational efficiency.
In comparison to its industry peers such as Havells India, Voltas, Whirlpool of India, and Blue Star, LG Electronics India has achieved the highest revenue from operations and earnings per share in 2024. This reinforces its competitive advantage and robust market position. The company’s financial performance and strategic market positioning underline the potential attractiveness of the IPO for investors.
Morgan Stanley India Company, JP Morgan India, Axis Capital, BofA Securities India and Citigroup Global Markets India are the book-running lead managers for the IPO, while KFin Technologies has been appointed as the registrar for the issue. Key dates pertaining to the IPO are yet to be officially announced.