In a significant development, LG Electronics India, a subsidiary of South Korea’s LG Electronics, has obtained approval from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering (IPO).
Key Details of the IPO:
- Offer Structure: The IPO will be entirely an offer for sale (OFS), with LG Electronics Inc. selling up to 10.18 crore equity shares, representing a 15% stake in the company. Each share has a face value of ₹10.
- Proceeds: As the offering is an OFS, LG Electronics India will not receive any proceeds. The funds raised will go directly to the parent company, LG Electronics Inc.
- IPO Size: While the company has not officially disclosed the total issue size, reports suggest it is estimated at approximately ₹15,000 crore, potentially making it one of India’s largest IPOs.
Company Overview:
Established in 1997, LG Electronics India has been a dominant player in the Indian consumer electronics and home appliances market. The company offers a wide range of products, including washing machines, refrigerators, LED TVs, inverter air conditioners, and microwaves. It operates manufacturing units in Noida (Uttar Pradesh) and Pune (Maharashtra).
Market Position:
According to a Redseer Report cited in the Draft Red Herring Prospectus (DRHP), LG Electronics India has maintained its leadership in major home appliances and consumer electronics categories for 13 consecutive years (2011–2023) in offline sales by value.
IPO Management:
The IPO will be managed by leading investment banks, including Morgan Stanley India, JP Morgan India, Axis Capital, BofA Securities India, and Citigroup Global Markets India. KFin Technologies will serve as the registrar for the issue.
Looking Ahead:
The approval from SEBI marks a crucial step in LG Electronics India’s journey towards becoming a publicly listed company in India. The IPO is expected to enhance the company’s visibility and brand image, providing liquidity and a public market for its equity shares.
Get more information like about company, financial information and offer object here on LG Electronics IPO page