Electronics major LG Electronics India (LGEI) has received the green light from market regulator Securities and Exchange Board of India (Sebi) to launch its maiden share sale, sources said on Thursday.
The Indian arm of the Seoul-headquartered home appliances and electronics company could roll out its Rs 15,000 crore maiden share sale once market conditions turn conducive, they added.
LGEI had filed its draft red herring prospectus (DRHP) with Sebi on December 6. The initial public offering (IPO) is entirely an offer for sale (OFS), with parent company LG Electronics looking to divest a 15 per cent stake. The IPO could value LGEI at Rs 1 trillion.
LGEI’s IPO will make it India’s fifth-largest issue, with another South Korean firm, Hyundai Motor India (HMI), topping the list with its Rs 27,870 crore IPO in October last year. HMI’s IPO was also entirely an OFS, with Seoul-based Hyundai divesting a 17.5 per cent stake in its Indian arm.
In India, LG Electronics is the largest home appliances and consumer electronics player after Samsung India Electronics.
The company competes with global and Indian brands, including Voltas, Havells, Godrej, Blue Star, Haier, Whirlpool, Philips, Samsung, and Sony.
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 IPO.
In its DRHP, LGEI said India’s appliances and electronics market had grown at around 7 per cent in the past five years, and this growth is expected to accelerate to around 12 per cent in the next five years, driven by rising disposable incomes, growing urbanisation, and increasing penetration of appliances and electronics in both urban and rural areas.
LGEI’s revenue from operations in FY24 stood at Rs 21,352 crore, while Samsung India Electronics’ revenue in the previous financial year stood at Rs 99,541.6 crore, according to the company’s DRHP.
