MUMBAI: LG Electronics is set to become the second Korean firm to go public after the auto major Hyundai, with the domestic unit of the Far East Asian consumer electronics giant getting the regulatory nod for a Rs 15,000-crore public float which will be an offer for sale.
Last October, Hyundai Motor India became the first Korean company to launch a Rs 27,870.2-crore share sale, making it the largest ever in the history of Dalal Street.
The large issue comes even as close to 45 issuers with Sebi approval have either called off or have decided to delay their issues given the massive rout in the market that began last October and still goes unabated. Since the September 27 peak, the indices are down more than 18% with investors losing close to Rs 70 trillion of their share value and the market cap losing by over Rs 112 trillion.
Though the company has not disclosed the issue size yet, a person familiar with the issue said the issue is likely to be Rs 15,000 crore. Last month, the company had started roadshows for the IPO.
Since the public issue is only an offer-for-sale (OFS), LG India will not receive any money from the issue, and the entire proceeds will go to the Korean chaebol LG (Life’s Good).
In December, LG had filed the preliminary papers with Sebi through which the parent will sell over 10.18 crore shares amounting to a 15% stake.
LG Electronics is a leading player in the home appliances and consumer electronics segment such as washing machines, refrigerators, LED panels, air-conditioners, and microwaves and had manufacturing units in Noida, and Pune.
LG India's revenue from operations stood at Rs 64,088 crore in fiscal 2024.