LG Electronics India files for IPO, plans to dilute 15% stake

LG Electronics India Ltd, the Indian subsidiary of South Korea’s LG Electronics Inc, has filed draft papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The public issue, entirely an offer for sale (OFS), involves the sale of 10.18 crore equity shares by the promoter, LG Electronics Inc, as per the draft red herring prospectus (DRHP).
The South Korean parent will offload 10,18,15,859 equity shares of face value ?10 each through the OFS. Post-IPO, the promoter’s shareholding will reduce by 15%, leaving LG Electronics Inc with 57.69 crore shares in the Indian arm. Notably, no new shares will be issued in this IPO, meaning LG Electronics India will not receive any proceeds.
In its filing, LG Electronics India emphasized that the listing aims to boost its visibility, enhance its brand image, and create liquidity for its shares in the public market.
LG Electronics India is a key player in the home appliances and consumer electronics sectors, catering to both individual and business clients domestically and internationally. The company also offers installation, repair, and maintenance services.
The IPO will be managed by leading merchant bankers, including Morgan Stanley India, JP Morgan India, Axis Capital, BofA Securities India, and Citigroup Global Markets India.
If listed, LG Electronics India will become the second South Korean chaebol to be traded on Indian stock exchanges after Hyundai Motors India Ltd.
For the financial year ending March 31, 2024, LG Electronics India reported a revenue of ?64,087.97 crore, underscoring its strong position in the Indian market.