LG Electronics India Subsidiary IPO Plan Approved... Expected to Raise 2 Trillion Won

Funds Raised Will Go to LG Electronics Headquarters

LG Electronics' India subsidiary has received approval for its initial public offering (IPO) plan from the Securities and Exchange Board of India (SEBI).

LG Twin Towers, Yeouido, Seoul. Photo by Yonhap News

According to Bloomberg on the 18th, with this approval, LG Electronics can proceed with procedures such as promoting the stock sale and finalizing the listing schedule. LG Electronics formalized its listing plan by submitting the Draft Red Herring Prospectus (DRHP) for its India subsidiary to SEBI at the end of last year.

In this IPO, LG Electronics plans to sell 118.2 million shares held by its India subsidiary without issuing new shares. Accordingly, the raised funds will go to LG Electronics' headquarters, not the India subsidiary. Industry experts expect LG Electronics to raise up to $1.5 billion (approximately 2.1788 trillion KRW) through this IPO.

LG Electronics' India subsidiary has maintained the number one position in the home appliances and consumer electronics sectors in India for over 10 years. For the fiscal year 2023?2024 (April 2023 to March 2024), its sales in India reached 216 billion rupees (approximately 3.6245 trillion KRW), with a net profit of 15.1 billion rupees (approximately 25.34 billion KRW).

Bloomberg reported that this LG Electronics India subsidiary IPO could be the largest IPO in India this year. However, it also noted that the recent downturn in the Indian stock market has led some companies to withdraw their IPO plans, suggesting that market conditions could impact the IPO.