LG Electronics Raises Rs 3,475 Crore From Anchor Investors Ahead Of Rs 11,607-Crore IPO
SBI Large & Midcap Fund got the highest allocation of 4.6%, followed by INQ Holding LLC at 3.9%, Government Of Singapore at 3.4%, and Government Pension Fund Global at 3%.
LG Electronics India Ltd. has raised nearly Rs 3,475 crore from anchor investors on Monday, ahead of its initial public offering. The company allotted 3.04 crore shares at Rs 1,140 apiece to 149 anchor investors.
SBI Large & Midcap Fund got the highest allocation of 4.6%, followed by INQ Holding LLC at 3.9%, Government Of Singapore at 3.4%, and Government Pension Fund Global at 3%. Marquee investors including Goldman Sachs and Blackrock Global Funds also bagged shares of the issue.
A total of 26 domestic mutual funds applied through 84 schemes, the electronics firm said in an exchange filing on Monday. They have collectively netted 48.9% of the anchor portion. These include mutual funds from the likes of SBI, Axis, Kotak Mahindra, HDFC, Nippon, Bandhan, Aditya Birla, Edelweiss, HSBC, and more.
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 is set to launch its initial public offering on Oct. 7 with the issue closing on Oct. 9 according to the company’s red herring prospectus. The IPO will only comprise offer for sale of up to 10.18 crore equity shares. The price band for the issue is set at Rs 1,080-1,140 per share. Through the IPO, the South Korean parent — LG Electronics Inc. — will offload 10.2 crore shares.
About LG Electronics India
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%.
