LG Electronics India Receives SEBI Approval for Rs 15,000 Crore IPO Through Offer for Sale
LG Electronics India Limited announced on Tuesday that it has received approval from the Securities and Exchange Board of India (SEBI) to launch its long-awaited initial public offering (IPO). The company plans to raise approximately Rs 15,000 crore through the offering.
LG Electronics India, a wholly-owned subsidiary of South Korea’s LG Electronics Inc., had submitted its draft red herring prospectus (DRHP) to SEBI on December 6, 2024. With SEBI’s final observation now in place, the company can proceed with its IPO plans.
The entire IPO will be an offer for sale (OFS), meaning LG Electronics Inc. will sell up to 10.18 crore equity shares in the company. Each share has a face value of Rs 10, and the IPO will not generate fresh capital for LG Electronics India. Instead, it will provide an opportunity for the parent company to reduce its stake in the Indian arm.
Although the exact size of the IPO has not been officially disclosed, reports suggest that it is expected to be around Rs 15,000 crore. Investment banks Morgan Stanley India, JP Morgan India, Axis Capital, BofA Securities India, and Citigroup Global Markets India will manage the IPO, while KFin Technologies will serve as the registrar for the issue.
LG Electronics India has been a leading player in the Indian home appliances and consumer electronics market. According to a Redseer report cited in its DRHP, the company has maintained its position as the market leader in offline sales by value for 13 consecutive years, from 2011 to 2023.
Financially, the company has shown strong growth. In the financial year 2024, it reported a revenue of Rs 21,352 crore, up from Rs 19,868.24 crore in the previous year. Its profit after tax also rose by 12.35%, reaching Rs 1,511.07 crore compared to Rs 1,344.93 crore in the previous year. For the quarter ending June 30, 2024, the company recorded revenue of Rs 6,408.80 crore and a profit after tax of Rs 679.65 crore.
LG Electronics India’s IPO follows the recent success of Hyundai Motor India’s public offering, which raised Rs 27,870.16 crore last year, marking India’s largest IPO to date. Similar to Hyundai’s offering, LG Electronics India’s IPO will also be an offer for sale (OFS) with no fresh issue component.
This IPO marks a significant development for LG Electronics India as it looks to expand its presence in the Indian market and bring in greater investor interest.
