LG Electronics India Set to Launch Rs 15,000 Crore IPO

LG Electronics India Ltd has received approval from Sebi for its Rs 15,000 crore IPO. The wholly-owned subsidiary of the South Korean LG chaebol plans to sell over 10.18 crore shares. While LG Electronics India won't receive proceeds, funds will benefit its parent company. Major insurers are managing the issue.

LG Electronics India Ltd, a branch of South Korea's LG group, has secured approval from the Securities and Exchange Board of India (Sebi) for its ambitious Rs 15,000 crore Initial Public Offering (IPO), sources revealed on Thursday.

Slated to be the second South Korean company to venture into the Indian stock market, following Hyundai Motors India Ltd's debut last October, LG Electronics India continues to capture attention. In December, the company submitted preliminary papers for the IPO, involving the sale of over 10.18 crore shares, representing a 15 percent equity stake.

This public issue, being entirely an Offer for Sale (OFS), will not bring any proceeds to LG Electronics India. Instead, the funds will flow to its South Korean parent. Presently, LG Electronics India stands as a significant player in home appliance and consumer electronics markets, with Morgan Stanley India, J P Morgan India, Axis Capital, BofA Securities India, and Citigroup Global Markets India leading the issuance of shares.