LG Electronics India, the Indian arm of the South Korean company, has filed draft red herring prospectus (DRHP) with BSE SME to raise funds through an initial public offering (IPO). The proposed IPO is entirely an offer for sale (OFS) of 10.18 crore equity shares by promoter LG Electronics Inc with no fresh issue component.
Its South Korean parent company LG Electronics Inc will sell 10,18,15,859 equity shares of face value of Rs 10 each. Post-offer, its shareholding will be diluted by 15 per cent to 57.69 crore shares in the company. Since the public issue is completely an OFS, LG Electronics India will not receive any proceeds from the IPO. The company expects the listing of the equity shares will enhance its visibility and brand image and provide liquidity and a public market for the shares.
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 Electronic will be the second Korean Chaebol after Hyundai Motors India to be listed in India.
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.
| Company Name | CMP |
|---|---|
| LG Electronics India | 1511.20 |
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| IFB Industries | 1288.25 |
| Honeywell Automation | 36122.95 |
| Elin Electronics | 106.50 |
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