LG Electronics India, a subsidiary of the South Korean electronics giant, has set the stage for its much-anticipated Initial Public Offering (IPO) on the Indian stock market. The company has announced a price band of Rs 1,080-1,140 per share for its Rs 11,607 crore offering, valuing the company at approximately Rs 77,400 crore at the upper end of the price band.

IPO Details

It's important to note that this IPO is entirely an offer-for-sale, meaning that LG Electronics India will not receive any proceeds from the offering. All funds raised will go to the South Korean parent company.

Company Overview

LG Electronics India operates in the home appliances and consumer electronics sectors, with manufacturing units located in Noida and Pune. The company has a strong presence in the Indian market and has been expanding its reach globally.

Export Performance

• Export Destinations: 46-47 countries
• Export Revenue: USD 160.00 million (approximately 6% of total revenue)
• Growth: 45% increase in exports in the last financial year

Future Plans

LG Electronics India has ambitious expansion plans on the horizon:

• New Manufacturing Facility: A third facility planned in Sri City, Andhra Pradesh
• Investment: USD 600.00 million
• Expected Operational Date: 2029
• Objective: To double the company's manufacturing capacity

Market Significance

This IPO marks a significant milestone as it will be the second South Korean company to list on Indian stock exchanges, following Hyundai Motors India. The listing is expected to attract considerable attention from both domestic and international investors, given LG's strong brand presence in the Indian consumer electronics market.

Investor Considerations

Potential investors should note that while LG Electronics India has a strong market position and growth plans, the IPO proceeds will not be utilized for the company's expansion. Instead, they will be directed to the parent company. As always, investors are advised to carefully review the prospectus and consider their financial goals before making an investment decision.

The LG Electronics India IPO represents a unique opportunity for investors to participate in the growth story of a well-established brand in the Indian consumer electronics sector. As the subscription window approaches, market observers will be keenly watching the response to this significant offering in the Indian capital markets.

LG Electronics, the South Korean tech giant, is preparing for a significant Initial Public Offering (IPO) in the Indian stock market. The company aims to raise ₹15,000 crore through this share sale, positioning it as a major IPO in India.

IPO Details

• Offering Size: ₹15,000 crore
• Shares on Offer: 15% of the Indian arm (10.2 crore shares)
• Regulatory Approval: Received in March, following December filing

Valuation Adjustments

LG Electronics has revised its valuation expectations:

• Initial Valuation: $15.00 billion
• Revised Valuation: $10.50-11.50 billion

Key Players

The IPO is being managed by a consortium of leading financial institutions:

• Morgan Stanley India
• JP Morgan India
• Axis Capital
• BofA Securities India
• Citigroup Global Markets India

These firms will serve as the book-running lead managers for the offering.

Market Context

LG Electronics' IPO is set to make a significant impact in the Indian market:

• It will be a major IPO in India.
• The offering will mark the second-largest by a Korean company in India, following Hyundai's IPO.

This move by LG Electronics underscores the growing interest of international tech giants in the Indian capital markets. The success of this IPO could potentially pave the way for more global companies to consider public listings in India, further boosting the country's position as an attractive destination for foreign investments.