LG Electronics India & Innovision Secure SEBI Nod for IPOs
The subsidiaries LG Electronics India Ltd and Innovision Ltd obtained the necessary approval from SEBI so that they could launch their IPOs. Both companies are subsidiaries of LG and Innovision. The draft IPO documents filed by LG Electronics India alongside Innovision reached the Securities and Exchange Board of India (SEBI) in December 2024 before receiving SEBI observations on both entities on March 13 and March 12 respectively. SEBI considers observations to be the approval that allows a public issue to move forward.
LG Electronics India IPO Details
The proposed public offering of LG Electronics India contains an exclusive Offer for Sale (OFS) as its funding mechanism. Over 10.18 crore shares amounting to 15% of the Indian unit will be sold by LG Electronics through a divestment process. Sources suggest that the overall issue size of LG Electronics India's proposed public offering amounts to Rs 15,000 crore according to undisclosed information in their Draft Red Herring Prospectus (DRHP).
LG Electronics has chosen to list publicly as the second South Korean company following Hyundai Motors India Ltd's October 2024 entry. LG Electronics India will not obtain any funds from its initial public offering because the entire sale operates as an Offer for Sale which sends money directly to its South Korean parent corporation.
Company Performance & Market Leadership
The Indian subsidiary of LG Electronics entered operations in 1997 to become a leading consumer electronics market leader in the country. The company operates manufacturing and sales operations from Noida (Uttar Pradesh) and Pune (Maharashtra) where they produce washing machines, refrigerators, LED TVs, inverter air conditioners, and microwaves which they distribute to customers.
The financial performance of the company indicates powerful growth with FY24 total revenue at Rs 21,352 crore while FY23 reported Rs 19,868.24 crore. The company achieved Rs 1,511.07 crore after-tax profit (PAT) which demonstrated a 12.35% annual growth.
The Redseer Report shows LG Electronics India has ruled the offline consumer electronics market since 2009 without any interruption. The worldwide market data shows that LG Electronics maintains leadership as the biggest home appliances company with a single brand during 2023. LG Electronics operates its Indian customer network through 36,401 B2C locations together with 949 authorized service stations throughout the country to provide instant installation and repair services.
Industry Positioning & Competitive Advantage
In the industry, LG Electronics India maintains the highest revenue from operations and earnings per share (EPS) for 2024 which demonstrates its powerful position in the market against competitors Havells India, Voltas and Whirlpool of India, and Blue Star.
IPO Management & Key Dates
Important managing investment partners in the IPO include Morgan Stanley India Company and JP Morgan India as well as Axis Capital, BofA Securities India, and Citigroup Global Markets India. The organization responsible for issue registration is KFin Technologies. When the IPO managers will announce the opening and closing dates for the offering remains unclear.
Conclusion
The approval of IPOs from LG Electronics India and Innovision demonstrates ongoing capital market investment interest from international business entities alongside Indian organizations. The upcoming LG Electronics India IPO holds major importance because of its position as a leader in the market and its robust financial foundation along with its broad distribution network.
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