LG Electronics Set to Launch IPO for Indian Subsidiary, Eyeing $12.5 Billion Valuation
LG Electronics Inc. has approved an Initial Public Offering (IPO) for its Indian subsidiary. The company plans to offer 10.2 crore shares, representing 15% of the post-offer stake, valuing the Indian arm at approximately $12.50 billion. The IPO will be structured as an offer for sale. LG aims to submit final registration documents to SEBI soon, with the share sale tentatively scheduled for October. The company has enlisted Morgan Stanley India, JPMorgan India, Axis Capital, BofA Securities India, and Citigroup Global Markets India as bankers for the IPO.
*this image is generated using AI for illustrative purposes only.
LG Electronics Inc., the South Korean consumer electronics giant, has given the green light for an Initial Public Offering (IPO) of its Indian subsidiary, setting the stage for one of the country's most anticipated listings in the consumer durables sector.
IPO Details
The company plans to offer up to 10.2 crore shares of LG Electronics India Ltd., representing 15% of the post-offer stake. This move is expected to value the Indian arm at approximately $12.50 billion. Notably, the IPO will be structured as an offer for sale, meaning the South Korean parent company will be selling existing shares without issuing fresh equity.
Timeline and Regulatory Process
LG Electronics aims to submit the final registration documents to the Securities and Exchange Board of India (SEBI) in the coming weeks. The company anticipates completing the regulatory process by next month, with the share sale tentatively scheduled for October.
It's worth noting that LG Electronics India has already received SEBI's approval for the IPO in March, paving the way for this significant market move.
Banking Partners
To navigate this substantial offering, LG Electronics has enlisted the services of several prominent financial institutions. The roster of bankers for the IPO includes:
- Morgan Stanley India
- JPMorgan India
- Axis Capital
- BofA Securities India
- Citigroup Global Markets India
Market Context
As LG Electronics India prepares to go public, it will join a group of listed peers in the Indian consumer durables market. Some of the notable companies in this space include:
- Havells India
- Voltas
- Whirlpool of India
- Blue Star
The IPO is likely to draw significant attention from both institutional and retail investors, given LG's strong brand presence in the Indian market and its diverse product portfolio spanning televisions, home appliances, and air conditioning systems.
This move by LG Electronics to list its Indian subsidiary underscores the importance of the Indian market in its global strategy and could potentially set a precedent for other multinational companies operating in India.
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