LG Electronics India (LGEI) has received approval from market regulator Securities and Exchange Board of India (Sebi) to launch its initial public offering..
Once market conditions improve, the Seoul-based home appliances and electronics company's Indian division may begin its Rs 15,000 crore initial share offering.
LGEI filed its draft red herring prospectus (DRHP) with Sebi on December 6. The initial public offering (IPO) is solely an offer for sale (OFS), with parent company LG Electronics seeking to sell a 15% stake. The IPO could value LGEI at Rs 1 trillion.
With its Rs 27,870 crore offering in October of last year, Hyundai Motor India (HMI) topped the list, and LGEI's IPO will be the fifth-largest in India. With Hyundai, based in Seoul, selling a 17.5% stake in its Indian subsidiary, HMI's IPO was also fully an OFS.
After Samsung India Electronics, LG Electronics is the second-biggest manufacturer of consumer electronics and home appliances in India.
Brands like Voltas, Havells, Godrej, Blue Star, Haier, Whirlpool, Philips, Samsung, and Sony are among the company's rivals, both domestically and internationally.
The book-running lead managers for the IPO include Morgan Stanley India, JP Morgan India, Axis Capital, BofA Securities India, and Citigroup Global Markets India.
According to LGEI's DRHP, India's appliances and electronics market has grown at a rate of around 7% over the last five years, and this growth is expected to accelerate to around 12% over the next five years, owing to rising disposable incomes, growing urbanisation, and increasing penetration of appliances and electronics in both urban and rural areas.
LGEI's operating revenue in FY24 was Rs 21,352 crore, while Samsung India Electronics' revenue in the previous fiscal year was Rs 99,541.6 crore, according to the company's DRHP.
