By Admin 
LG Electronics India’s IPO was fully subscribed on the first day of its launch, and more than 3 times oversubscription was seen on the second day. This clearly shows the enthusiasm of the investors, but there are some facts behind this fantastic growth story which can be dangerous to ignore. According to InGovern, the company has contingent liabilities of about ₹4,717 crore, which forms about 73% of the company’s net worth. These are mainly due to disputes related to income tax, excise and service tax. If these cases go against the company, it will have a direct impact on its future earnings and balance sheet. Apart from this, even after the IPO, LG Electronics (South Korea) will retain 85% stake, thereby maintaining control of the parent company. In such a situation, minority shareholders will have little say in decisions—especially in sensitive matters like related-party transactions. Before investing in IPO, keep in mind not only growth but also governance and legal risks. Because in the stock market, not only profits but also provisions matter.