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Upcoming IPO: LG Electronics India Ltd, a subsidiary of South Korean chaebol LG, has received approval from market regulator Sebi for an initial public offering (IPO) worth Rs 15,000 crore, people familiar with the matter said on Thursday. It will be the second South Korean company to enter the Indian stock market after the listing of Hyundai Motors India Ltd in October last year. In December, LG Electronics India filed preliminary papers with Sebi for an IPO in which the parent company will sell 101.
8 million shares, equivalent to a 15 per cent stake. The company has now received approval from the Securities and Exchange Board of India to bring a public issue, people familiar with the matter said. The company did not disclose the total issue size, but said the estimated IPO size is Rs 15,000 crore.
Since this public issue is entirely an offer for sale (OFS), LG Electronics India will not receive any proceeds from the IPO. The funds raised will be given to the South Korean parent company. Last month, LG Electronics had started the roadshow for the upcoming IPO of its Indian unit.
LG Electronics India is a leading company in the home appliances and consumer electronics sector. The company's products are sold to both B2C and B2B customers in India and overseas. It also offers installation, repair and maintenance services for all its products.
The company manufactures and sells products including washing machines, refrigerators, LED TV panels, inverter air conditioners and microwaves. Its manufacturing units are located in Noida in Uttar Pradesh and Pune in Maharashtra. On the financial front, LG Electronics India posted operating revenue of Rs 64,087.
97 crore for the financial year ended March 31, 2014. Morgan Stanley India, JP Morgan India, BofA Securities India, Axis Capital, and Citigroup Global Markets India are the book running lead managers to the issue. (With Inputs From PTI).
