The Indian unit of LG Electronics will raise up to Rs 11,605 crore in an offer for sale that will open on October 7, it said on Wednesday.
The initial public offering (IPO), which will close on October 9 (for retail investors), will see the Indian subsidiary offer as many as 101.8 million shares in a price band of Rs 1,080-1,140 apiece. For anchor investors, the IPO will open a day earlier on October 6, it said.
At the current price band, the company’s valuation will be Rs 77,500 crore, or about $8.7 billion. This is the second IPO by a South Korean major after Hyundai Motor India last year and will be keenly tracked by most stakeholders. There is no fresh issue component in the IPO and the entire proceeds will be repatriated by the parent.
Market impact and valuation snapshot
At the peak valuation, the LG India IPO could make the company the No.1 appliance maker listed on Indian bourses by market capitalisation, sector experts said.
The company got the regulatory approval for its updated draft red herring prospectus on September 25 and filed the final version on Tuesday (September 30).
The delayed IPO: Regulatory journey and advisers
This is despite the company first filing its IPO papers with the Securities and Exchange Board of India in December 2024. While the approval came through in March this year, the company deferred the issue because of market volatility around that time.
Axis Capital, along with the Indian units of Morgan Stanley, JPMorgan Chase & Co, Bank of America and Citigroup, are the advisers to the share sale, according to the draft prospectus.
The IPO share allotment will be finalised by October 10. And LG India shares will be available for trading on the BSE and NSE, effective October 14.