LG Electronics India IPO: Rs 15,000 Crore Mega Issue - Company Files Papers With SEBI

LG Electronics India IPO: South Korea's LG Electronics Inc has announced plans to list its Indian subsidiary, LG Electronics India, by filing draft papers with the market regulator for an initial public offering (IPO). The consumer durables giant aims to raise approximately $1.8 billion (Rs 15,237 crore) through the offering.  

The IPO is expected to rank among India's top five largest public issues, alongside Hyundai Motor India, LIC, Paytm, and Coal India.  

"This is a pure offer for sale (OFS) by the parent company," said a source familiar with the matter. According to the draft red herring prospectus (DRHP), the OFS will include 101 million shares.  

LG Electronics India IPO - Details 

Total Shares For Offer: The company will issue 101,815,859 equity shares of face value of Rs 10 each, marking a 15 per cent stake in the company. 

Investment Banks: Morgan Stanley, JPMorgan, Axis Capital, Citi, BofA Securities, and KFinTech are managing the IPO.  

Legal Counsels: Shardul Amarchand Mangaldas is advising on Indian law, while Latham & Watkins LLP serves as legal counsel for international aspects of the offering.  

Objective: LG Electronics India stated in its DRHP that the listing would enhance visibility and brand recognition while providing liquidity and a public market for its equity shares.  

The announcement follows the recent listing of Hyundai Motor India, another South Korean company, which launched India's largest-ever IPO in October, raising $3.3 billion (Rs 27,856 crore). LG Electronics India IPO will be the second South Korean company to list on Indian bourses. 

LG Electronics India competes with Whirlpool of India, Samsung's India unit along with other key players in the domestic market, and reported a profit of Rs 1,511 crore in the last fiscal, 12 per cent higher the the FY2023.