LG Electronics India IPO: Rs 15,000 Crore OFS Filing With SEBI - Read Now

South Korea’s LG Electronics Inc has taken a significant step toward listing its Indian subsidiary, LG Electronics India, by filing draft papers with SEBI for a massive Rs 15,000 crore Initial Public Offering (IPO). This IPO will join the ranks of India's largest public issues, including those of Hyundai Motor India, LIC, Paytm, and Coal India.

Key Highlights of LG Electronics India IPO

1. Offer Size and Structure

   • LG Electronics India plans to issue 101.8 million equity shares via a pure Offer for Sale (OFS) by the parent company.
   • The IPO represents a 15% stake in the company, with shares having a face value of Rs 10 each.

2. Investment Banking Partners
   Leading financial institutions such as Morgan Stanley, JPMorgan, Axis Capital, Citi, BofA Securities, and KFinTech are managing the offering.

3. Legal Advisors

   • Shardul Amarchand Mangaldas is handling Indian legal counsel.
   • Latham & Watkins LLP is managing international legalities.

Objective of the IPO

According to the Draft Red Herring Prospectus (DRHP), the listing aims to:

• Enhance Brand Visibility: A public listing will strengthen LG’s brand recognition in India.
• Provide Liquidity: The IPO will establish a public market for LG Electronics India’s equity shares.

Comparison With Hyundai Motor India IPO

This announcement follows the October listing of Hyundai Motor India, which raised Rs 27,856 crore, making it India’s largest-ever IPO. LG Electronics India will be the second South Korean company to list on Indian bourses, marking a significant trend of South Korean conglomerates entering the Indian equity market.

Financial Performance and Market Position

• In FY2023, LG Electronics India reported a profit of Rs 1,511 crore, a 12% increase from the previous fiscal year.
• The company competes with major players such as Whirlpool of India and Samsung India in the consumer durables sector.

Impact of LG Electronics India IPO

1. Boost for Indian Markets
   The Rs 15,000 crore IPO will add liquidity and attract domestic and foreign investors, further cementing India’s position as a lucrative destination for global corporations.

2. Increased Competition
   As LG enters the Indian equity market, it will intensify competition in the consumer durables sector, challenging existing players and driving innovation.

3. Opportunities for Investors
   This IPO presents an opportunity for investors to participate in a leading consumer durables brand with a strong market presence and consistent profitability.

Comparison With Other Major Indian IPOs

LG’s IPO will rank among India’s top five public issues, underscoring its significance in the equity market.

What’s Next for LG Electronics India?

With the SEBI filing complete, the company awaits regulatory approvals before launching its IPO. Analysts predict high investor interest due to LG’s market dominance, robust financials, and growth potential.

The IPO also positions LG Electronics India as a key player in the consumer durables sector, leveraging the capital to strengthen its competitive edge.

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