LG Electronics India Limited, a subsidiary of South Korean electronics giant LG, has started preparations for listing in the Indian stock market. The company has filed a Draft Red Herring Prospectus (DRHP) with SEBI (Securities and Exchange Board of India). This IPO will be completely based on Offer for Sale (OFS), in which the company's parent firm LG Electronics Inc. will sell its 15% stake, i.e. about 10.18 crore shares.

This will be the value of IPO

According to media reports, the total value of this IPO can be around Rs 15,237 crore (about $1.8 billion). The amount raised from this offer will not go to LG Electronics India, but this fund will go to the parent company. The price band of the IPO will be decided according to the book building process and market demand.

Promoters' stake will decrease

After the IPO, the promoters' stake will decrease by 15% to 57.69%. This IPO will be a great opportunity for investors, especially those who are interested in the consumer electronics and home appliances sector. However, it is important to tell you here that the money raised from this offer will not go to LG Electronics India, but this money will go to the parent company.

Three important things in pointers

• IPO size- Rs 15,237 crore
• Sale of stake- 10.18 crore shares
• Offer Type- OFS Only

Work of LG Electronics

LG Electronics India is a major brand for products like washing machines, refrigerators, LED TVs and air conditioners in India. In the financial year 2023-24, the company earned a revenue of Rs 64,087.97 crore. Its manufacturing plants are located in Noida (Uttar Pradesh) and Pune (Maharashtra).

What will be the benefits of listing

According to LG Electronics India, the company's brand value and market visibility will increase through this IPO. Apart from this, it will give shareholders an opportunity to become a part of the public market. LG Electronics will be the second South Korean company to be listed in the Indian market, before this Hyundai Motors India was listed. However, the thing to note here is that this IPO is completely OFS based, due to which LG Electronics India will not get any funds directly. However, this can be a great opportunity to invest in the consumer electronics sector.