LG Electronics India Ltd, a leading player in the Indian consumer electronics market, has announced its plans for an Initial Public Offering (IPO) in what is expected to be one of India’s largest public offerings. The South Korean electronics giant filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), setting the stage for the highly anticipated public issue.
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The public offer will be entirely an Offer-for-Sale, with LG Electronics India selling approximately 101.8 million shares, which constitutes 15% of its total equity. Importantly, the company itself will not receive any proceeds from the sale, as all the proceeds will be directed to the selling shareholder.
Strong Fundamentals and Market Position
LG Electronics India has shown strong performance in recent years. For the financial year 2023-24, the company reported an earnings per share (EPS) of ₹22.26, marking an increase from ₹19.81 in FY2022-23.
The company is a market leader in India in several product categories, including washing machines, refrigerators, air conditioners, and microwaves, according to a Redseer Report. This solid market position reflects its strong brand presence and consumer trust.
Dividend History and Financials
In terms of dividends, LG Electronics India has been consistent, paying out ₹2,092.8 crore in FY2024, albeit lower than the ₹2,488.8 crore in FY2023. For FY2023-24, the company reported a net profit of ₹1,511 crore, reflecting steady growth despite a slight dip from ₹1,344 crore in the previous year.
The total income for FY2023-24 stood at ₹21,557 crore, an increase from ₹20,108 crore in FY2022-23, demonstrating the company’s resilience in the competitive electronics market.
Asset Growth and IPO Outlook
The company’s total assets for the quarter ending June 30, 2024, stood at ₹9,253 crore, a rise from ₹8,498 crore in the previous quarter. The strong financials and growth trajectory make LG Electronics India’s IPO a highly anticipated event in the market.
Investors will be closely watching the offer, as it provides a rare opportunity to invest in one of India’s most dominant players in the consumer electronics sector.
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As LG Electronics India gears up for this public offering, the IPO is expected to draw significant attention from institutional and retail investors alike, further solidifying the company’s growth prospects in the coming years.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
