LG Electronics India Ltd, a subsidiary of South Korean conglomerate LG, has secured approval from the Securities and Exchange Board of India (SEBI) for its ₹15,000 crore initial public offering (IPO), according to sources familiar with the matter.
This IPO will mark the second instance of a South Korean company entering the Indian stock market, with Hyundai Motors India Ltd having debuted last year.
In December, LG Electronics India filed its draft papers with SEBI for the IPO, in which its parent company plans to divest over 10.18 crore shares, representing a 15% stake.
The IPO size is estimated at ₹15,000 crore, although the exact amount was not disclosed by the company. As an offer for sale (OFS), all proceeds from the public issue will go to the South Korean parent company.
LG Electronics India kicked off roadshows for the upcoming IPO last month, showcasing its position as a leading player in the Indian market for home appliances and consumer electronics. The company offers a range of products to both B2C and B2B customers in India and overseas, along with installation and maintenance services.
Products manufactured and sold by LG Electronics India include washing machines, refrigerators, LED TV panels, inverter air conditioners, and microwaves. The company operates manufacturing facilities in Noida, Uttar Pradesh, and Pune, Maharashtra.
In the fiscal year ending March 31, 2024, LG Electronics India reported revenue from operations of ₹64,087.97 crore.
The book-running lead managers for the IPO are Morgan Stanley India, J.P. Morgan India, Axis Capital, BofA Securities India, and Citigroup Global Markets India.
