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LG Electronics India, the Indian arm of the South Korean company, on Friday filed preliminary papers with Sebi to float an IPO.
Post-offer, its shareholding will be diluted by 15 per cent to 57.69 crore shares in the company.
The Indian arm of a leading South Korean electronics company has taken its first step towards going public by filing preliminary papers with Sebi for an initial public offering (IPO). Known for its strong presence in the home appliances and consumer electronics market, the company plans to offer shares through a complete offer for sale, marking a significant milestone in its growth and market visibility.
Offer Details: No Fresh Issue Component
The proposed IPO of LG Electronics India is entirely an offer for sale (OFS) of 10.18 crore equity shares by promoter LG Electronics Inc with no fresh issue component, according to the draft red herring prospectus (DRHP).
Shareholding Post-IPO
Its South Korean parent company LG Electronics Inc will sell 10,18,15,859 equity shares of face value of Rs 10 each, according to DRHP.
Post-offer, its shareholding will be diluted by 15 per cent to 57.69 crore shares in the company.
No Proceeds for LG Electronics India
Since the public issue is completely an OFS, LG Electronics India will not receive any proceeds from the IPO.
Objective of the IPO
In its draft papers, LG Electronics India said it expects the listing of the equity shares will enhance its visibility and brand image and provide liquidity and a public market for the shares.
Merchant Bankers for the Issue
The merchant bankers for the issue are — Morgan Stanley India Company, JP Morgan India, Axis Capital, BofA Securities India, and Citigroup Global Markets India.
Second Korean Chaebol to List in India
LG Electronic will be the second Korean Chaebol after Hyundai Motors India Ltd to be listed in India.
Market Presence and Operations
LG Electronics India is a leading player in major home appliances and consumer electronics. The company products are sold to both B2C and B2B customers in India and internationally. It also provides installation, repair, and maintenance services for all its products.
Financial Highlights
LG Electronic India’s revenue from operations was Rs 64,087.97 crore for the financial year ended March 31, 2024.
(With agency inputs)
