The company disclosed contingent liabilities worth Rs 4,717 crore, nearly 73 percent of its net worth, mainly from disputed tax claims under litigation. Any negative outcome could reduce future earnings or require large provisions.

LG Electronics India pays a fixed royalty of 2.3 percent of net sales for most products and 2.4 percent for LCD TVs and monitors. The promoter can increase fees up to 5 percent without shareholder approval, potentially affecting profit margins. A Rs 315 crore contingent liability is linked to royalty payments to the promoter. Post-listing, the South Korean parent will retain an 85 percent stake, limiting minority shareholder influence on key decisions.

Despite these concerns, LG Electronics India has reported strong financials. For FY25, revenue stood at Rs 24,367 crore with net profit at Rs 2,203 crore. EBITDA margins were 12.8 percent. The company is debt-free, with revenue growing 10.9 percent annually over recent years, showing healthy profitability and operational strength.

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The company had submitted its application to SEBI in June, receiving approval recently to proceed with the public issue. Headquartered in Chennai, Lalitha Jewellery operates two manufacturing units in Tamil Nadu and maintains a strong retail footprint with 56 branches nationwide, especially across southern states.

The IPO aims to bolster the company’s capital base, fund business expansion, and enhance brand visibility in the competitive jewelry sector. With a trusted brand and extensive branch network, Lalitha Jewellery seeks to attract both institutional and retail investors, positioning itself as a key player in India’s organized jewelry market while supporting future growth initiatives.

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