LG Electronics India’s $1.8-billion IPO has drawn attention, particularly for its royalty payments to its South Korean parent company. For FY24, LG India paid about 2.3-2.4% of its sales as royalties, totaling ₹323 crore, as detailed in its draft red herring prospectus (DRHP). It’s noteworthy that royalty payouts above 5% require shareholder approval, making them a key consideration for potential investors. As LG India gears up for its IPO, these financial dynamics should be closely watched, with potential investors evaluating the implications of royalty expenses on the company’s profitability and growth.