LG Electronics India Begins Roadshows for Upcoming IPO to Attract Investors

LG Electronics has initiated roadshows for the initial public offering (IPO) of its Indian subsidiary. The South Korean conglomerate plans to sell over 10.18 crore shares, representing a 15% stake. A roadshow was held in Mumbai, and reports suggest the IPO could raise up to USD 1.5 billion. Similar events are planned in other cities to attract investors, according to industry insiders.

An LG Electronics representative stated that they cannot comment further as the draft red herring prospectus (DRHP) is still under review by the Securities and Exchange Board of India (SEBI). The DRHP was filed earlier on December 6, 2024, by LG Electronics India Ltd, a subsidiary of LG. This IPO will make LG Electronics the second South Korean company to enter the Indian stock market after Hyundai Motors India Ltd.

IPO Details and Financials

The IPO is structured entirely as an offer for sale (OFS) of 10.18 crore equity shares by LG Electronics Inc., with no new shares being issued. According to the DRHP, these shares have a face value of Rs 10 each. As a result, LG Electronics India will not receive any proceeds from this IPO; instead, the funds will go to its South Korean parent company.

LG Electronics India is a prominent player in home appliances and consumer electronics. It caters to both B2C and B2B markets in India and internationally. The company also offers installation, repair, and maintenance services for its products. For the financial year ending March 31, 2024, LG Electronics India's revenue from operations was Rs 64,087.97 crore.

The company's spokesperson reiterated that they are unable to provide additional comments beyond what is stated in the DRHP. The document has been shared with SEBI and remains under review.