Upcoming IPO: LG Electronics India Submits Draft Papers For Maiden Issue

The company didn’t reveal the exact issue size. This will mark the second public listing in India from a Korean big name after Hyundai Motor India

The IPO will comprise an offer for sale (OFS) of 101.8 million equity shares by the parent entity with a face value of Rs 10 each, the DRHP revealed.

Source : LG Electronics

LG Electronics India on Friday submitted the draft papers for the maiden offer. The domestic wing of the South Korean major LG Electronics Inc filed the draft red herring prospectus (DRHP) for the initial public offering (IPO) and industry sources stated that the issue size is likely to be more than Rs 15,000 crore.

The company didn’t reveal the exact issue size however, reported The Financial Express. This will mark the second public listing in India from a Korean big name after Hyundai Motor India. As per the sources, this will also be the fourth largest IPO seen in the country. The largest one so far has been Hyundai Motor at Rs 27,870 crore, followed by LIC and Paytm at Rs 21,008 crore and Rs 18,300 crore respectively.

The IPO will comprise an offer for sale (OFS) of 101.8 million equity shares by the parent entity with a face value of Rs 10 each, the DRHP revealed. After the listing, parent company LG Electronics’ stake will be diluted by 15 per cent to 576.9 million shares. 

The lead managers of the issue include Morgan Stanley, Axis Capital, BofA Securities, Citi, and J P Morgan. The firm in its draft papers noted, “Our company expects that listing of the equity shares will enhance our visibility and brand image and provide liquidity and a public market for the equity shares in India.”

During the April-June period in 2024, LG Electronics India clocked an overall revenue from operations at Rs 6,408.8 crore. More than three-fourths of the revenue was contributed by the home appliance and air solutions division. The overall revenue for FY24 stood at Rs 21,352 crore.

“We expect to continue making investments to support our growth. We intend to construct a third manufacturing unit in Andhra Pradesh to expand our manufacturing capacity to address the potential growth in demand for products,” the draft papers stated.