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Photo = Yonhap news |
[Alpha Biz= Paul Lee] The Securities and Exchange Board of India (SEBI) has approved the initial public offering (IPO) plan of LG Electronics' Indian subsidiary, according to a Bloomberg report on Tuesday.
With this approval, LG Electronics can now proceed with procedures such as stock sale promotions and finalizing its listing schedule. LG Electronics officially announced its IPO plans by submitting the Draft Red Herring Prospectus (DRHP) for its Indian subsidiary’s listing at the end of last year.
For this IPO, LG Electronics plans to sell 118.2 million shares of its Indian subsidiary without issuing new shares. As a result, the funds raised through the listing will go to LG Electronics’ headquarters, not the Indian subsidiary.
Industry experts estimate that LG Electronics could raise up to $1.5 billion (approximately 2.18 trillion KRW) through the IPO.
The Indian subsidiary of LG Electronics has maintained its position as the market leader in household appliances and consumer electronics in India for over a decade.
For the fiscal year 2023-2024 (April 2023 to March 2024), the Indian subsidiary’s revenue is expected to reach 216 billion INR (approximately 3.62 trillion KRW), with a net profit of 15.1 billion INR (approximately 253.4 billion KRW).
Bloomberg notes that LG Electronics’ Indian subsidiary’s IPO could become the largest in India this year, though it also points out that the recent downturn in the Indian stock market has led some companies to withdraw their IPO plans, suggesting that market conditions could affect the IPO’s outcome.
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
