LG Electronics IPO GMP In Focus Ahead Of October 7 Launch
LG IPO: 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.
Electronics giant LG India's much-anticipated IPO is set to open in the second week of October. Its parent, LG Electronics Inc., will divest more than 10 crore equity shares via an OFS, marking its strategic stake sale in the Indian arm. The company will seek investments from large institutions under the pre-IPO anchor round on October 6.
The IPO of LG Electronics India will look to raise Rs 813.07 crore through a book-built issue.
Here’s everything you need to know about the LG Electronics India, including its grey market premium (GMP), price band and offer size, among others.
LG Electronics India IPO GMP
The grey market premium for the LG Electronics IPO was Rs 146 at 9.00 a.m. on October 3. With an upper price band of Rs 1140, the estimated listing price is Rs 1286. This means the unlisted shares of LG Electronics IPO were trading at Rs 1286 per share in the private market, indicating an expected gain of up to 12.81% per share.
Note: GMP does not represent official data and is based on speculation. GMP data sourced from InvestorGain.
LG Electronics India IPO Dates
LG Electronics India IPO is scheduled to open on Tuesday, October 7, and will close on Thursday, October 9. The share allotment is expected to be finalised by Friday, October 10. The shares of LG Electronics India are tentatively set to list on NSE and BSE on Tuesday, October 14.
LG Electronics India IPO Details
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 Rs 10 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.
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. Kfin Technologies Ltd. is the registrar of the issue.
LG Electronics India IPO Business And Financials
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.
Financials
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.
Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.
