LG Electronics IPO: South Korean Parent To Sell Shares Via OFS In October

LG Electronics Inc. on Tuesday approved the launch of the initial public offering of shares of its India unit. The South Korean parent will sell shares via an offer for sale and issue no fresh equity in the IPO.

According to the board resolution, LG Electronics plans to submit the final securities registration statement to India’s Securities and Exchange Board of India, and the process is expected to be completed as early as next month, The Chosun Daily newspaper reported.

The draft papers for the IPO were filed in December with an intention to offload up to approximately 10.2 crore shares in LG Electronics India Ltd. The stake sale by the South Korean parent 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.

LG Electronics India received SEBI's nod for IPO in March.

The company, which is the country's second largest electronics major, will announce the price band, minimum investment amount, bidding lot size and other details soon.

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.

A successful debut will make LG India the second South Korean company to tap the Indian stock market, following the listing of Hyundai Motors India Ltd. in October last year.

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

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.