LG Electronics India to file for IPO to raise over ₹15,000 crore: Report

If plans do materialise, the public issue of LG Electronics India would be among the top 5 IPOs in the country.

LG Electronics India, the Indian subsidiary of South Korean giant LG Electronics, is reportedly set to file for a mega initial public offering (IPO) to raise more than ₹15,200 crore.

IPO stands for Initial Public Offering and it is when the promoters of the company in question for the first time want to raise additional funds by offering shares of the company.

“The e-filing of the draft red prospectus with Sebi (Securities and Exchange Board of India) is likely to be done shortly. This is a really large deal and the issue size is expected to be around $1.8 billion or ₹15,237 crore,” a person aware of the development told Moneycontrol.

The IPO is a pure OFS (offer for sale) by the parent company, a second person told the website.

According to two other persons, investment banks working on the deal include Morgan Stanley, JP Morgan, Axis Capital, Citi, and Bank of America (BofA) Securities.

They also said, “Shardul Amarchand Mangaldas is the lawyer for LG Electronics, while Cyril Amarchand Mangladas is representing the banks. The Indian market has attracted multiples, and a public listing would lead to a stronger India connection.”

If plans do materialise, the public issue of LG Electronics India would be among the top 5 IPOs in the country, a club which currently includes Hyundai Motor India, Life Insurance Corporation (LIC), Paytm and Coal India.

As per an October 29 report in the Business Standard, LG Electronics India's revenue saw a 7% jump to ₹21,557 crore in FY24, while the net profit rose 12% to ₹1,511 crore during this period.

Of the company's revenue, 27% came from the sales of refrigerators, followed by washing machines (21%) and 20% each by televisions and air conditioners.