December 16, 2024
New Delhi, India
LG Electronics India Prepares for $15 Billion IPO
South Korea’s LG Electronics is set to list its Indian subsidiary on domestic stock exchanges, aiming for a valuation of up to $15 billion. The IPO, expected in the first half of 2025, reflects the company’s strategy to enhance brand visibility and attract global investors.
Key Highlights:
- Valuation: Up to $15 billion.
- Listing Exchanges: NSE and BSE.
- Offer Details:
- Up to 101.82 million shares to be sold.
- No new shares issued.
- Shareholding diluted by 15%, post-offer standing at 57.69 crore shares.
- Revenue: ₹64,087.97 crore for FY24.
Strategic Objectives
In its draft red herring prospectus (DRHP), LG Electronics India stated the listing would:
- Enhance visibility and brand image.
- Provide liquidity and a public market for its shares.
The IPO will make LG Electronics the second South Korean chaebol listed in India, following Hyundai Motors India Ltd.
Industry Standing
LG Electronics India is a major player in home appliances and consumer electronics, catering to both B2C and B2B markets. It also provides services like installation, repair, and maintenance.
Merchant Bankers
Leading financial institutions managing the IPO include:
- Morgan Stanley India Company.
- JP Morgan India.
- Axis Capital.
- BofA Securities India.
- Citigroup Global Markets India.
Market Context
Shares of LG Electronics in Seoul dropped 13% this year, lowering the parent company’s market valuation to $10 billion. However, LG Electronics India is riding high on strong investor interest, with earlier valuation targets of $13 billion revised to $15 billion due to growing demand.
LG Electronics India’s IPO marks a milestone for the company and the Indian market. As the launch nears, global investors await this high-profile listing with keen interest.
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