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The much-anticipated Rs 11,600 crore IPO of LG Electronics India is currently open for subscription and has already attracted strong investor attention.

The issue, priced in the range of Rs 1080–Rs 1140 per share, is a complete Offer for Sale (OFS), with proceeds going to the promoters rather than the company.

In an exclusive conversation with Anil Singhvi, Managing Editor of Zee Business, Sanjay Chitkara (Chief Sales Officer) and Atul Khanna (Chief Accounts Officer) shared insights on the company’s journey, future plans, and the rationale behind the IPO pricing.

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Calling the IPO a strategic milestone, Sanjay Chitkara said, “This IPO is not a finishing line but a new chapter for LG Electronics in India. We aim to deliver sustainable and profitable growth by driving innovation, offering localized products, and strengthening customer trust.”

He emphasised that LG has been a market leader in categories such as refrigerators, washing machines, air conditioners, and microwave ovens. The company now plans to bring more “industry-first” products to enhance consumer experience.

Chitkara added that LG’s growth will not be limited to consumer appliances alone. “We are expanding into B2B segments like commercial air conditioners, display panels, and e-blackboards. Alongside, we are also introducing service-based revenue streams such as subscription programs to build long-term customer relationships,” he explained.

Importantly, LG is investing further in India’s manufacturing ecosystem. “We are setting up our third plant in Andhra Pradesh. This demonstrates our commitment to the ‘Make in India’ initiative and to strengthening local manufacturing capabilities,” Chitkara highlighted.

On the financial front, Atul Khanna underlined LG’s consistent performance. “Over the last three fiscal years, our average growth rate has been 10.7 per cent. In FY25, we achieved a growth rate of 14 per cent. We are a debt-free and cash-flow positive company, and we see opportunities to sustain this momentum,” he said.

Khanna noted that LG has steadily improved its localisation, which now stands at 54 per cent. “Every year we increase localisation by 2–3 per cent. This helps reduce forex impact, optimise procurement, and improve margins. Going forward, we are confident of maintaining margins at current or even higher levels,” he added.

When asked about royalty payments to the parent company in Korea, Chitkara clarified, “Our royalty is very reasonable at around 1.9 per cent of turnover. It covers brand consistency, innovation platforms, and technology support. We fixed the structure two years ago and have no intention to revise it further.”

A key question was why LG chose to price its IPO relatively modestly compared to peers.

Responding to Singhvi, Chitkara explained, “Valuations are ultimately based on fundamentals and market sentiment. Our fundamentals are strong, industry-leading profit growth, market leadership, and a solid balance sheet. We wanted to offer a value proposition where investors can participate in our next phase of growth and share in our success.”

Both executives have been with the company for over two decades, growing from entry-level positions to leadership roles.

Chitkara reflected, “I joined as a sales representative in 1999, and today I am speaking to you as Chief Sales Officer. This journey itself shows the culture of growth and opportunity at LG.”

Khanna echoed similar sentiments, “I joined in 2000 at a junior level and now lead the finance function. The company provides an open environment, and we feel pride in being part of LG’s journey in India.”

LG Electronics India’s IPO opened for subscription on October 7 and will close on October 9. The price band is fixed at Rs 1,080–Rs 1,140 per share, which values the company at about Rs 77,400 crore at the top end.

This IPO is fully an offer-for-sale (OFS) of 10.18 crore shares, equal to a 15 per cent stake, being sold by its South Korea-based parent.

This makes LG the second Korean company to list in India after Hyundai Motors India in October last year.

For allotment, 50 per cent of the shares are reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors, and 15 per cent for non-institutional investors.

LG Electronics India is likely to list on the stock exchanges on October 14.

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Anubhav Maurya

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