LG Electronics India’s initial public offering has attracted marquee investors such as Abu Dhabi Investment Authority (ADIA), Fidelity, Blackrock, and Goldman Sachs ahead of its Rs 11,605-crore IPO ($1.3-billion), which will open on Tuesday.
The company raised Rs 3,475 crore, allocating 30.5 million shares at Rs 1,140 apiece to 149 anchor investors. Domestic mutual funds, totaling 26, cornered a sizable share of the allocation — 14.9 million — accounting for nearly 49% of the anchor book. This was done through 84 schemes, valuing the investment at Rs 1,698 crore.
Who are part of the anchor book?
India’s largest fund managers, including SBI Mutual Fund, ICICI Prudential Asset Management, and Nippon Life India Asset Management, are part of the anchor book. Some of the other international investors include the Government of Singapore, the Monetary Authority of Singapore, INQ Holdings, T Rowe Price International, and Schroder International.
The South Korean company’s listing, which is happening at a price band of Rs 1,080-1,140 per share, would cap a nearly yearlong process since its December filing that has seen delays amid market volatility and global trade uncertainties. An IPO at the top of the price range would value the India unit at Rs 77,500 crore ($8.7 billion), significantly below the Rs 1.3 lakh crore ($15 billion) it sought in December.
Who are the advisors to the share sale?
The IPO is an offer for sale, implying that the money raised will be repatriated by the parent. Axis Capital, along with the Indian units of Morgan Stanley, JPMorgan Chase & Co., Bank of America Corp., and Citigroup Inc., are the advisers to the share sale, according to the draft prospectus.
LG India will list its shares on October 14. This is the second biggest IPO of the current week, after Tata Capital’s Rs 15,512-crore initial share sale.