LG Electronics India has taken a significant step by filing a Draft Red Herring Prospectus (DRHP) with the market regulator for its initial public offering (IPO). The South Korean electronics giant aims to raise ₹15,237 crore ($1.8 billion) through an offer for sale by its parent company, LG Electronics Inc., signaling its commitment to expanding operations in India.
Key Details of the IPO
- Shares on Offer: LG Electronics Inc., the promoter, will offload 10.18 crore shares in the IPO.
- Lead Managers: Morgan Stanley, JP Morgan, Axis Capital, BofA Securities, and Citigroup have been appointed as Book Running Lead Managers, with KFin Technologies Limited as the registrar.
- Comparison with Hyundai: LG’s IPO follows Hyundai’s Indian listing, which raised $3.3 billion in October 2024.
Investment Plans in India
LG Electronics India is gearing up for significant expansion:
- Third Factory in India: The company plans to invest ₹5,000 crore to establish a third manufacturing facility.
- Supplier Localization: To strengthen its supply chain, LG is encouraging South Korean and Chinese component suppliers to set up local plants.
Financial Performance
LG Electronics India has shown consistent growth in revenue and profitability:
- Revenue: ₹6,409 crore for the quarter ending June 30, 2024, and ₹21,352 crore for FY24, a 7% increase from the previous year.
- Profit After Tax (PAT): ₹680 crore in the June 2024 quarter and ₹1,511 crore for FY24, up from ₹1,345 crore in FY23.
Conclusion
LG Electronics India’s IPO is a strategic move to strengthen its presence in the Indian market and fund its ambitious expansion plans. With robust financials and a focus on local manufacturing, the company is poised for long-term growth. Investors and industry watchers eagerly anticipate its market debut, marking another milestone in India’s IPO landscape.