LG Electronics India Ltd Set to Launch ₹15,000 Crore IPO Following SEBI Approval

In an exciting development for investors, LG Electronics India Ltd, a notable subsidiary of the South Korean conglomerate LG, has received the green light from the Securities and Exchange Board of India (SEBI) for its upcoming initial public offering (IPO). Valued at ₹15,000 crore, this IPO is poised to mark a significant moment in the Indian stock market, as it will position LG Electronics as the second South Korean enterprise to be listed, following Hyundai Motors India‘s debut in October 2024.

Key Highlights of the LG Electronics India IPO

• Approval Status: SEBI has officially approved the IPO plans for LG Electronics India.
• Issue Size: The IPO is pegged at ₹15,000 crore, although the company hasn’t disclosed the total issue size.
• Stake Sale: The parent company is set to sell over 10.18 crore shares, which translates to a 15% stake in the Indian subsidiary.

As part of the IPO structure, this offering will be a complete Offer for Sale (OFS), meaning that LG Electronics India will not retain any proceeds from the public offering. Instead, all funds raised will benefit its parent company in South Korea.

Financial Advisory and Roadshow Initiatives

To facilitate this IPO, a robust team of financial institutions has been appointed as book-running lead managers. These include:

• Morgan Stanley India
• J.P. Morgan India
• Axis Capital
• BofA Securities India
• Citigroup Global Markets India

Recently, LG Electronics launched a series of roadshows to generate interest and inform potential investors about the upcoming IPO, highlighting its commitment to transparency and engagement.

About LG Electronics India

LG Electronics India stands out as a leader in the home appliances and consumer electronics market. The company offers a wide array of products, catering to both B2C and B2B markets. Its product lineup includes:

• Washing machines
• Refrigerators
• LED TV panels
• Inverter air conditioners
• Microwaves

Manufacturing operations are spread across strategic locations, including Noida, Uttar Pradesh, and Pune, Maharashtra. Financially, the company reported a revenue of ₹64,087.97 crore for the fiscal year ending March 31, 2024, showcasing its strong market presence and operational robustness.

Market Trends and Investor Sentiment

As IPOs face fluctuating market conditions, with 37 newly listed stocks currently trading below their issue prices, the upcoming IPO of LG Electronics India invites curiosity and speculation. Will it thrive in this challenging environment, or will it contribute to the ongoing narrative of an IPO slowdown? Investors and analysts alike are keenly observing the situation as the launch date approaches.

In conclusion, LG Electronics India Ltd’s IPO represents a pivotal moment for both the company and the Indian stock market, promising to attract significant investor attention and potentially reshape the landscape of consumer electronics in India.