LG Electronics' India Unit Files Draft Papers With SEBI For IPO

LG Electronics Inc.'s India unit filed draft papers with the Securities and Exchange Board of India on Friday for its initial public offering. The consumer electronics giant will be selling up to approximately 10.2 crore shares in LG Electronics India Ltd. through the offer.

The stake sale by the South Korean parent will represent 15% of the post-offer stake in the Indian arm. The issue will include no fresh issue of shares, and the offering will be a pure offer for sale, according to the draft red herring prospectus.

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.

Bloomberg News had earlier reported that LG is likely to raise $1 billion to $1.5 billion from the stake sale. This could give the IPO-bound LG Electronics India a $13-billion valuation, making its listing one of the biggest in the country.

LG's draft filing for the Dalal Street listing follows fellow South Korean multinational Hyundai Motor Corp.'s Rs 27,870-crore IPO of its Indian subsidiary in October.

The company's listed peers include Havells India Ltd., Voltas Ltd., Whirlpool of India Ltd. and Blue Star Ltd.