After a brief lull in big-ticket IPOs, the Indian stock market is gearing up for another major listing – this time from a household name in consumer electronics. After Hyundai Motors India made waves last year, another South Korean giant, LG Electronics India, is ready to debut on the Indian stock exchanges.
The consumer electronics leader has secured approval from the Securities and Exchange Board of India (SEBI) for its much-anticipated Rs 15,000 crore IPO, as reported by PTI.
For investors eyeing this mega listing, here are five key things to know: 1. A pure offer for sale (OFS) – No fresh capital for LG India
Unlike some IPOs where companies raise fresh funds for expansion, LG Electronics India’s IPO is structured as an OFS. This means that the entire Rs 15,000 crore raised will go to the South Korean parent, LG Electronics Inc., and not to the Indian subsidiary. Investors should note that this IPO won’t bring additional capital to LG’s Indian operations but is instead aimed at unlocking value for the parent company.
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LG Electronics Inc. will offload over 10.18 crore shares in the IPO, which accounts for a 15% stake in LG Electronics India. While this listing will provide an opportunity for Indian investors to own a share in the company, the majority stake and decision-making will remain with the South Korean parent.
3. About the company: A key leader in consumer electronics
LG Electronics India is a household common name in the consumer electronics and home appliances segment. From washing machines and refrigerators to panel televisions and air conditioners, the brand holds a dominant market share, particularly in offline retail. The company also serves both business-to-consumer (B2C) and business-to-business (B2B) markets.
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Looking at the financial performance of the company, this electronics maker has been consistently reporting a good number in its balance sheet. For the financial year ending March 31, 2024, LG Electronics India recorded revenue from operations of Rs 64,087.97 crore.
5. Top investment banks managing the IPO
The IPO is backed by leading global investment banks.
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