LG Electronics India Receives Sebi Approval For Rs 15,000 Cr IPO

Fri, 14 March 2025

10:27

Electronics major LG Electronics India (LGEI) has obtained the green light from the market regulator, the Securities and Exchange Board of India (Sebi), to launch its maiden share sale, said sources.

The Indian arm of the Seoul-headquartered home appliances and electronics company could roll out its Rs 15,000 crore (Rs 150 billion) 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 percent 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 (Rs 278.70 billion) IPO in October last year.

HMI's IPO was also entirely an OFS, with Seoul-based Hyundai divesting a 17.5 percent 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 stated that India's appliances and electronics market had grown at around seven per cent in the last five years, and this growth is expected to accelerate to around 12 percent 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 (Rs 213.52 billion), while Samsung India Electronics' revenue in the previous financial year stood at Rs 99,541.6 crore (Rs 995.41 billion), according to the company's DRHP. -- Sundar Sethuraman, Business Standard

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