LG Electronics India Sets IPO Price Band Ahead Of Oct. 7 Launch— Check Details

LG Electronics India Ltd., will offer shares in a price band of Rs 1,080-1,140 per share in the upcoming initial public offering, according to a public advertisement released on Wednesday. The IPO will be open between Oct. 7 and Oct. 9.

The IPO is a book built issue comprising entirely an offer-for-sale component of up to 10,18,15,859 or more than 10 crore equity shares at a face value of Rs10 per share. Through the IPO, the South Korean parent — LG Electronics Inc. — will offload 10.2 crore shares.

However, there is no fresh issue component in the public offer.

The stake sale by the parent entity will represent 15% of the post-offer stake in the Indian arm — valuing the country's second-largest electronics major at around $12.5 billion.

Bids can be made for a minimum of 13 equity shares, requiring an investment of Rs 14,820 for each lot, based on the upper price band.

LG Electronics India received SEBI's nod for an IPO in March. Morgan Stanley India Co., JPMorgan India Pvt., Axis Capital Ltd., BofA Securities India Ltd. and Citigroup Global Markets India Pvt. are the bankers for the IPO.

The company will seek investments from large institutions under the pre-IPO anchor round on Oct. 6. The allotment of shares to IPO investors will be finalised tentatively on Oct. 10. LG Electronics India will list on the BSE and NSE on Oct. 14.

LG Electronics India operates in two key segments: home appliances and air solutions and home entertainment. It has firmly established itself as the market leader in major home appliances and consumer electronics, excluding mobile phones.

The company holds the top position in India across product categories such as washing machines, refrigerators, panel TVs, inverter air conditioners, and microwaves as per the value market share in the offline channel, stated the draft red herring prospectus. This dual focus on high-demand product categories and offline market strength has positioned LG as a go-to brand for Indian consumers.

While the company made a profit of Rs 1,511 crore in the fiscal 2024, it paid a much more liberal dividend of Rs 2,093 crore at Rs 185 per share.

In the first quarter of the current fiscal, the company reported a revenue of Rs 6,409 crore and a profit of Rs 680 crore. Operating income stood at Rs 958 crore and its margin against the top line came up to 14.94%.

As of June 30, the company's cash balance stood at Rs 3,606 crore.