LG Electronics IPO: Ad spends stand at Rs 254.7 crore in FY24; sales promotions at Rs 686 crore
LG Electronics is set to make its stock market debut in India, with its Rs 11,607 crore initial public offering (IPO) opening for subscription from October 7 to 9, 2024
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South Korean consumer durables giant LG Electronics is set to make its stock market debut in India, with its Rs 11,607 crore initial public offering (IPO) opening for subscription from October 7 to 9, 2024. The price band has been fixed at Rs 1,080–Rs 1,140 per share, with the issue being a complete offer for sale (OFS) of up to 10.18 crore equity shares by its promoters.
According to the company’s draft red herring prospectus (DRHP), LG Electronics India's revenue from operations stood at Rs 21,352 crore in FY24, compared to Rs 19,868.2 crore in FY23 and Rs 16,965.7 crore in FY22. Net profit rose to Rs 1,511 crore in FY24, up from Rs 1,345 crore in FY23 and Rs 1,174.7 crore in FY22. For the three months ended June 30, 2024, the company reported a profit of Rs 679.6 crore on revenues of Rs 6,408.7 crore.
A majority of its business comes from the Home Appliances and Air Solution division, which contributed nearly 79% of revenue in Q1 FY25. Within this, refrigerators contributed Rs 2,160 crore (33.71%), washing machines Rs 1,176.8 crore (18.36%), and air conditioners Rs 1,414.8 crore (22.08%) for the three months ended June 30, 2024. The Home Entertainment division contributed Rs 1,347.8 crore, led by televisions at Rs 1,045 crore.
On the expense front, LG Electronics India reported Rs 254.7 crore in advertising spends in FY24, broadly in line with Rs 267 crore in FY23 and Rs 249 crore in FY22. Sales promotion costs stood at Rs 686 crore in FY24, compared with Rs 623 crore in FY23 and Rs 506 crore in FY22.
LG electronics IPO comes at a time when consumer demand for home appliances and electronics is buoyed by rising disposable incomes, urbanisation, and premiumisation trends.
