Upcoming IPO: The Indian Branch of South Korean Group, LG Electronics India, is projected to present the updated draft Red Herring Prospectus (UDRHP) for it. According to a report by Financial Express (FE), 15,000 crore IPOs for market regulator SEBI earlier next month citing their sources. The company planned to launch its shares on Dalal Street later in the same month.
The firm has already hosted Roadshow to attract investors for IPOs. It received approval from SEBI for IPO in March of this year. According to the FE report, the company has operated the roadshow to attach potential investors for the IPO.
The objective of the IPO is to generate 15,000 crores, including a proposal for sale from its original company. LG Electronics intends to divide a 15% stake in its Indian operations.
The IPO is expected to increase the company’s expansion in other Asian and African markets, reduced its dependence on North America after a recent announcement of sufficient tariffs on imports by USA last week.
In addition, LG Electronics is ready to start the construction of its third consumer electronics manufacturing facility in India, which will be located in the SRI city. Currently, it operates two manufacturing plants in the country – one in Noida and the other in Ranjangon, Maharashtra. The company is an important player in India’s Consumer Durables sector, competing with brands such as Samsung, Voltas and Whirlpool.
LG Electronics India IPO – Four major things to learn
Promoter details
According to DRHP, the company’s promoter has 678,772,392 equity shares, which are with a marked price 10 each. This total consists of six equity shares 10 Each, each of the following persons held by each: Ajay Rambal, Atul Khanna, Gurpinderjit Singh, Kapil Mehra, Sandeep Kumar, and Vishal Rastogi, working on behalf of the nominees for the LG Electronics Inc.
Equivalent
According to DRHP, the company listed comrades (with P/E of 85.48), Voltus (with P/E of 221.53), whirlpool (with P/E of 111.65), and Blue Star (with P/E of 92.21).
Financial position
According to reports, LG Electronics recorded its highest revenue in India for FY14. Revenue from its Indian business increased by 14.8%, which reached $ 2.8 billion, as indicated by regulatory filing. Additionally, its net profit in India increased by 43.4% compared to the previous year.
Company Details
The company claims one of the most comprehensive product categories between top home equipment and consumer electronics brands (except mobile phones) in India by June 30, 2024 based on the Redseer report. Firm B2C and B2B marketing both customers both at India and international levels. Additionally, the company offers installation services with repair and maintenance services for all its offerings.
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