Sebi clears Korean major LG’s mega IPO
Mumbai, March 19, 2025
While the company has not indicated the IPO size, market estimates are that the company is likely to mop up around Rs 15,000 crore
After Hyundai Motor India, another Korean giant is planning to list its shares on the Indian exchanges. LG Electronics India has received approval from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering (IPO). While the company has not indicated the IPO size, market estimates are that the company is likely to mop up around Rs 15,000 crore.
Hyundai had raised Rs 27,000 crore from the IPO and listed its shares in India in October 2024.
The LG 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.
Sebi issued observation letter to LG Electronics India on March 13. The issuance of observation letter means the company can launch its IPO within the next on year from the receipt of the said letter.
LG had filed its IPO papers with the SEBI on December 6, 2024. The entire IPO proceeds will go to the Korean promoter, and the Indian company will not receive any money from the IPO. Hence, the main object is to achieve the benefits of listing equity shares on the stock exchanges.
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 crore, reflecting a 12.35 per cent increase from the previous fiscal year. It 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.
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.
[The Indian Express]
