LG Electronics India IPO get SEBI’s approval: 10 things to know about Rs 15,000 crore issue

LG Electronics India IPO: LG Electronics India Ltd, a subsidiary of the South Korean chaebol LG, has received approval from the markets regulator Securities and Exchange Board of India (SEBI) for its initial public offering (IPO), news agency PTI reported.

Here are 10 things you need to know about the IPO

1. This is the second South Korean company to launch an IPO in the country, following the listing of Hyundai Motors India Ltd in October last year.
2. The company has not disclosed the total issue size, but they said the pegged IPO size is Rs 15,000 crore.
3. The company filed preliminary papers with SEBI for the IPO in December. This parent company will offload 10.18 crore shares, amounting to a 15 per cent stake.
4. According to the draft red herring prospectus (DRHP), the company will sell 10,18,15,859 equity shares of face value of Rs 10 each.
5. The public issue is completely an offer for sale (OFS), meaning LG Electronics India will not receive any IPO proceeds. OFS means the promoters (owners) sell their shares to raise additional funds for the company. The funds raised will go to the South Korean parent. 
6. Last month, LG Electronics started roadshows for the upcoming IPO of its Indian unit.
7. LG Electronics India is a leading player in major home appliances and consumer electronics. LG manufactures and sells products like LED TV panels, washing machines, refrigerators, air conditioners, and others.
8. The company has two manufacturing units in India – Noida, Uttar Pradesh and Pune, Maharashtra.
9. LG Electronics India’s revenue from operations was Rs 64,087.97 crore for the financial year ended March 31, 2024.
10. Morgan Stanley India, J P Morgan India, Axis Capital, BofA Securities India, and Citigroup Global Markets India are the book-running lead managers for the issue.