The company had filed its draft red herring prospectus (DRHP) with SEBI in the first week of December for its maiden public issue. The IPO size is expected to be around Rs 15,000 crore, potentially making it India’s fifth-largest IPO, following those of Life Insurance Corporation, Hyundai Motor India, Paytm, and Coal India.
The offering will be an entirely offer-for-sale (OFS) by the promoter, LG Electronics Inc., which plans to sell 10.18 crore shares, representing a 15% stake in the company’s equity capital. The company’s decision to go public comes at a time when India’s capital markets have been witnessing strong demand for large-sized offerings.
LG Electronics India is a dominant player in the consumer electronics space. It holds the top position in the Indian market for refrigerators, washing machines, and microwave ovens. It is also the second-largest player in the air conditioner segment and one of the top two brands in the television category.
This IPO will make LG Electronics the second South Korean company to list on Indian exchanges. In October 2024, Hyundai Motor India successfully raised Rs 27,870 crore through its public issue, which was oversubscribed 2.37 times. Hyundai’s IPO became the largest-ever in India, surpassing the Rs 21,008 crore raised by Life Insurance Corporation of India in May 2022.
Morgan Stanley, JPMorgan, Axis Capital, BofA Securities, and Citi are the lead managers for the LG Electronics India IPO.LG entered the Indian market in 1997 and has established a strong manufacturing base in the country. The company operates two production facilities — one in Greater Noida, Uttar Pradesh, and the other in Ranjangaon, near Pune. Notably, LG manufactures nearly 97-98% of the products it sells in India, demonstrating its deep-rooted commitment to local production and the ‘Make in India’ initiative.
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