LG Electronics files for IPO with SEBI, plans to sell 101.8 million shares – CNBC TV18

The Indian arm of South Korean conglomerate LG Electronics has filed for an initial public offering (IPO) with market regulator SEBI, a draft red herring prospectus (DRHP) filing by the company showed on Friday.

LG Electronics India will be selling 101.8 million shares, with the entire issue being an offer-for-sale (OFS) by its parent company, LG Electronics Inc. The proceeds from the IPO will go to the parent firm, according to the DRHP.

The IPO, which is estimated to raise approximately $1.8 billion, is poised to place LG Electronics India among the top five largest IPOs in Indian market history, according to Moneycontrol.

LG Electronics India, a major player in the Indian market, operates across various sectors including consumer electronics, home appliances, HVAC (Heating, Ventilation, and Air Conditioning), and IT hardware. Its parent company, LG Electronics Inc., is one of the world’s leading electronics manufacturers. Its main rivals are the domestic unit of Whirlpool, and Samsung.

In August, the LG’s CEO William Cho had revealed that an Indian market debut was one of several options the company considered to revitalise a decades-old consumer electronics business.

In India, LG seeks to sustain rapid growth. In the first six months of this year, revenue at LG’s unit within the Asian country rose 14% to a record 2.87 trillion won, while net income climbed 27% to 198.2 billion won. The LG India IPO coincides with a boom in India’s capital markets. Some 189 companies aim to sell shares to raise $5.6 billion this year, making it one of the busiest markets in this space. At least 30 IPOs joined the pipeline as demand powered by domestic money pushes companies to explore listings.

In June, Hyundai Motor India became the first car manufacturer to go public in nearly two decades, following Maruti Suzuki’s IPO in 2003.

The LG India IPO is managed by leading investment banks, including Morgan Stanley, J.P. Morgan, Axis Capital, BofA Securities, and Citigroup Global Markets, according to the company’s DRHP.

Legal advisors for the deal include Shardul Amarchand Mangaldas for the company and Cyril Amarchand Mangaldas for the banks.