LG India paid Rs 323 crore in royalty in FY24

LG Electronics India, which filed its offer document last week for a $1.8-billion initial public offering (IPO), paid 2.3-2.4% of sales in royalty to its parent in FY24, totalling `323 crore, its draft red herring prospectus (DRHP) showed.

Analysts and proxy advisory firms say that royalty rates may increase in the future as LG India continues to depend on its parent entity for various aspects of its business. This is despite efforts to increasingly localise operations by the firm.