LG Electronics India Sets IPO Price, Prepares for Stock Market Debut

LG Electronics India Ltd, the Indian subsidiary of South Korea's LG conglomerate, announced on Wednesday that it has set a price band of Rs 1,080-1,140 per share for its highly anticipated Rs 11,607 crore IPO.

At the apex of the pricing, the company is estimated at a valuation of about Rs 77,400 crore. The IPO subscription will take place from October 7 to October 9, while anchor investors will be invited on October 6, according to a public statement from the company.

The IPO marks the second South Korean company to enter the Indian stock market, following Hyundai Motors India's IPO last October. The entire offering constitutes an OFS of 10.18 crore shares, translating to a 15% stake sold by the South Korean parent. Since it's a complete OFS, the Indian arm of LG won't receive any proceeds from the IPO, as the raised funds are earmarked for the parent company.

LG Electronics India, recognized for its strength in home appliances and consumer electronics, caters to both B2C and B2B sectors domestically and internationally. The company produces and retails diverse products such as washing machines, refrigerators, LED TV panels, inverters, air conditioners, and microwaves, manufactured at its Noida and Pune units.

For the fiscal year ended March 31, 2024, LG Electronics India's operational revenue reached Rs 64,087.97 crore. The IPO's allocation involves 50% reserved for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional investors. The company is slated to debut on the stock market on October 14, with Morgan Stanley India, J P Morgan India, Axis Capital, BofA Securities India, and Citigroup Global Markets India leading the IPO as book-running managers.