LG Electronics India Limited is coming up with an IPO, offering to sell 10.18 crore shares worth INR XXX crores. The company aims to enhance visibility and brand image and provide liquidity through equity share listing. 

LG Electronics India IPO – Important Dates 

LG Electronics IPO: Important things to know before the IPO launch

LG Electronics India Limited IPO – Company Profile 

LG Electronics India Limited, a market leader in home appliances and consumer electronics, leverages strong parentage, innovative technologies, and the trusted “LG” brand to dominate multiple product categories and offline channels nationwide. 

They promote products via campaigns, sales promoters, and a strong pan-India distribution network. This is supported by extensive after-sales service with 949 centres, 12,590 engineers, and same-day installations, ensuring consumer satisfaction and market leadership. 

They operate a pan-India supply chain network with 25 warehouses, enabling efficient inventory management, faster deliveries, direct trade partner shipments, and cost optimisation by reducing delivery times and third-party dependencies. 

LG Electronics India Ltd IPO Fundamental Analysis 

LG Electronics India Limited’s financial analysis reveals a mixed performance. Revenue has grown steadily, but declining profitability, EPS, and RoNW, alongside increased debt reliance and reduced liquidity, raise concerns despite improved inventory turnover and asset growth. 

• Revenue Trend: The revenue increased from ₹168,342.13 million in March 2022 to  198,645.93 million in March 2023. The revenue for the current year’s 3-month period ending June 2024 is INR 64,087.97 million. 
• Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has increased, indicating rising reliance on debt financing. (for the period 31st March 2022 to 31st March 2023)
• Profitability: The profit after tax (PAT) has significantly decreased from ₹11,747.33 million in March 2022 to ₹6,796.46 million by June  2024. This decline in profitability could be a source of concern among investors. 
• Earnings per Share (EPS): The diluted EPS has reduced from ₹17.31 in March 2022 to ₹10.01 by June 2024, reflecting lower earnings per share for investors. 
• Return on Net Worth (RoNW): The RoNW has reduced from 21.50% to 15.39%, indicating a decrease in the company’s ability to generate returns on shareholder equity. 
• Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has decreased, indicating weakening liquidity and potential challenges in meeting short-term obligations. (for the period 31st March 2022 to 31st March 2023) 
• Inventory Turnover Ratio: There’s an increase in the Inventory Turnover Ratio, which might suggest faster sales or efficient inventory management. (for the period 31st March 2022 to 31st March 2023) 

Check out the other upcoming IPOs this month:

LG Electronics India IPO Financial Analysis 

LG Electronics India Limited IPO Peer Comparison 

LG Electronics India Limited leads in revenue, followed by Havells, Voltas, Whirlpool, and Blue Star. Each company shows varying profitability performance, with Whirlpool leading in specific financial metrics, including margins and returns. 

LG Electronics India Ltd IPO Objective 

The main objective of LG Electronics India Limited is to enhance visibility and brand image and provide liquidity through equity share listing. 

LG Electronics India IPO Risks And Challenges 

LG Electronics India Limited’s risk includes dependence on LG Electronics for intellectual property, technology, and exports, potential conflicts of interest, reliance on non-exclusive agreements, and vulnerability to commodity price fluctuations, supply chain disruptions, and geopolitical factors. 

• The company’s dependence on LG Electronics for key intellectual property, technology, and brand licensing subjects it to potential operational disruptions, financial uncertainties, and strategic conflicts, particularly if the licensing terms or regulatory requirements are modified. 

• The absence of exclusivity with LG Electronics may lead to potential conflicts of interest, especially if they expand into competing businesses. Additionally, reliance on LG for exports and the involvement of key personnel in related-party transactions pose operational uncertainties. 

• The company is vulnerable to fluctuations in global commodity prices, supply chain disruptions, and geopolitical factors. These could lead to higher raw material costs, delays in production, and reduced margins, which would impact financial performance and operations. 

LG Electronics India Ltd IPO – Industry & Market Potential 

The global appliances & electronics market has grown at a 1.5% CAGR to reach ₹115 trillion by 2024, driven by emerging economy demand, smart home tech, energy-efficient solutions, and e-commerce, with a projected 3% CAGR by 2028. 

India’s appliances and electronics market, valued at ₹6,360 billion in H1 2024, is projected to reach ₹10,060 billion by 2028. This growth is driven by rising incomes, urbanisation, premium products, and strong retail and e-commerce growth, with LGEIL leading the market. 

India’s consumer electronics market, comprising ~75% of the overall sector, is expected to reach ₹6,620 billion by 2028. Demand for home entertainment, personal care gadgets, and mobile phones, along with e-commerce and retail growth, will drive this growth. 

LG Electronics India Limited IPO – Type of Offer 

LG Electronics India Limited proposes an offer to sell 10.18 crore existing shares, aiming to enhance visibility and brand image and provide liquidity through equity share listing. 

1. Offer for sale: LG Electronics India Limited is offering to sell 10.18 crore existing shares. The following are the details of the existing shareholder, who is also the promoter selling the shares:

LG Electronics India IPO Offer Size 

The offer size of LG Electronics India Limited is yet to be announced, consisting of an offer to sell 10.18 crore existing shares. The company aims to enhance visibility and brand image and provide liquidity through equity share listing. 

LG Electronics India Limited IPO Allotment Structure 

LG Electronics India Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

How to apply for LG Electronics India IPO?

To apply for the LG Electronics India Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the LG Electronics India Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the LG Electronics India Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check LG Electronics India IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the LG Electronics India Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the LG Electronics India Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

 Apart from Alice Blue, there are other ways to check the allotment status of the LG Electronics India Limited IPO:

● Registrar’s Website: Visit the website of KFin Technologies Limited, the registrar of the LG Electronics India Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

● BSE NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) National Stock Exchange (NSE). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

LG Electronics India Ltd IPO Offer Registrar

The registrar for the LG Electronics India Limited IPO is KFin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

KFin Technologies Limited

Selenium, Tower B, Plot No-31 and 32

Financial District, Nanakramguda,

Serilingampally

Hyderabad, Rangareddi 500 032

Telangana, India

Tel: +91 1800 309 4001/ +91 40 6716 2222

E-mail: [email protected]

Website: www.kfintech.com 

LG Electronics India IPO – FAQs