LG Electronics India IPO: Firm eyes up to $15 billion valuation; check other latest buzz

LG Electronics, the South Korean company, is planning to list its Indian arm on the domestic stock exchanges, the National Stock Exchange (NSE) and the BSE, with a targeted valuation of up to $15 billion, Bloomberg reported on Monday, December 16.

As per the report, LG filed a draft red herring prospectus (DRHP) earlier this month. It outlines the plans to sell up to 101.82 million shares, with no new shares being issued.

Post-offer, its shareholding will be diluted by 15% to 57.69 crore shares in the company, as per reports.

In its draft papers, LG Electronics India said it expects the listing of the equity shares will enhance its visibility and brand image and provide liquidity and a public market for the shares.

LG Electronics India is a leading player in major home appliances and consumer electronics. The company products are sold to both B2C and B2B customers in India and internationally. It also provides installation, repair, and maintenance services for all its products.

The merchant bankers for the issue are Morgan Stanley India Company, JP Morgan India, Axis Capital, BofA Securities India, and Citigroup Global Markets India.

LG Electronics will be the second Korean conglomerate after Hyundai Motors India Ltd to be listed in India. LG Electronics India's revenue from operations was ₹64,087.97 crore for the financial year ended March 31, 2024.

Shares of LG Electronics have dropped about 13% this year in Seoul, dragging down the company's market valuation to $10 billion.

However, the Indian unit of LG has a strong year for share sales amid growing interest from global investors. According to the Bloomberg report, in September, the company had earlier planned a valuation of around $13 billion.