LG Electronics India Ltd, the Indian arm of the South Korean company, on Friday filed initial documents with capital markets regulator Sebi for an initial public offering (IPO).
The proposed IPO is entirely an offer for sale (OFS) of 10.18 crore equity shares by promoter LG Electronics Inc., with no new issue component, as per the Draft Red Herring Prospectus (DRHP).
Its South Korean parent LG Electronics Inc will sell 10,18,15,859 equity shares of face value of Rs 10 each, according to DHRP.
After the offer, the company’s shareholding will be diluted by 15 percent to 57.69 crore shares.
As the public issue is fully OFS, LG Electronics India will not receive any proceeds from the IPO.
In its draft documents, LG Electronics India expects the listing of equity shares to increase its visibility and brand image and provide liquidity and a public market for the shares.
LG Electronics India is a leading player in major home appliances and consumer electronics. The company’s products are sold to both B2C and B2B customers in India and internationally. It also provides installation, repair and maintenance services for all its products.
The merchant bankers for this issue are – Morgan Stanley India Company, JP Morgan India, Axis Capital, BofA Securities India and Citigroup Global Markets India.
LG Electronics will become the second Korean chaebol after Hyundai Motors India Ltd to list in India.
LG Electronic India’s income from operations for the fiscal year ended March 31, 2024 was Rs 64,087.97 crore.