LG Electronics India has raised approximately 34.75 billion rupees ($391.88 million) from anchor investors, including Blackrock and the sovereign wealth funds of Singapore and Norway, as part of its upcoming $1.3 billion initial public offering (IPO). The shares were allocated at the upper end of the price range, between ₹1,080 to ₹1,140, according to an exchange filing released on Monday.
This IPO occurs during what is projected to be the second-busiest quarter for Indian market listings, with firms aiming to raise as much as $8 billion in total. Although LG Electronics India had initially aimed for a listing in May following its IPO application in December, the share sale was postponed due to market volatility.
Blackrock’s investment totaled 971.6 million rupees, while Singapore’s sovereign fund contributed 1.71 billion rupees, and Norway’s fund invested 1.05 billion rupees. Additionally, shares amounting to 1.02 billion rupees were allocated to the Abu Dhabi Investment Authority.
Domestic mutual funds acquired about 49% of the shares designated for anchor investors, with notable purchases from SBI and HDFC funds. These anchor investors will collectively purchase nearly 30% of the total 101.8 million shares offered in the IPO.
Anchor investors are typically large institutional entities, such as mutual funds, insurance companies, and pension funds, that receive share allocations prior to the public subscription period. They are subject to a mandatory lock-in period post-listing, during which they cannot sell their shares.
The three-day share sale for other investors is set to open on October 7. LG Electronics India is recognized as the country’s second-largest appliance manufacturer, competing primarily with Whirlpool and Samsung in the local market. The parent company aims to establish India as a global manufacturing hub, leveraging competitive labor costs and robust domestic demand, according to a recent statement to Reuters.
