South Korean consumer electronics giant LG Electronics is set to launch a massive ₹15,000 crore Initial Public Offering (IPO) for its Indian unit, having secured approval from India’s capital market regulator, the Securities and Exchange Board of India (SEBI). This IPO is poised to be among the top five most extensive public offerings in the history of the Indian stock market.
Key Highlights of LG India’s IPO:
- IPO Size: ₹15,000 crore
- Issue Type: Offer for Sale (OFS)
- Number of Shares: 10.18 crore equity shares (face value ₹10 each)
- Company Valuation Post Listing: Approximately $13 billion (₹1.10 lakh crore)
- Stock Listing: BSE and NSE
A Landmark IPO in India’s Market
With its enormous size, LG India’s IPO will rank among the largest public issues ever in India, following the footsteps of market heavyweights such as LIC, Paytm, and Coal India. The IPO will be structured as an Offer for Sale (OFS), meaning that LG Electronics will sell existing shares rather than raising fresh capital for expansion. Consequently, the proceeds will go directly to the parent company.
The company filed its Draft Red Herring Prospectus (DRHP) with SEBI on December 19, 2024, marking a significant step toward its stock market debut. The lead managers for the IPO include major global investment banks Morgan Stanley, J.P. Morgan, Axis Capital, Bank of America Securities, and Citigroup.
How to Apply for LG India’s IPO?
Investors can apply for LG India’s IPO through the following methods:
1. Applying via UPI-Based Online Applications (For Retail Investors)
- Retail investors can apply through UPI using brokerage apps such as Zerodha, Upstox, Groww, Angel One, and ICICI Direct.
- To apply, investors must:
- Log in to their brokerage app or website
- Navigate to the IPO section
- Select LG India IPO
- Enter the number of lots they wish to bid for
- Link a UPI ID for payment approval
- Accept the mandate request in their UPI app
- Wait for IPO allotment results
2. Applying via ASBA (Application Supported by Blocked Amount) in Bank
- Investors can also apply through net banking ASBA services offered by banks such as SBI, HDFC, ICICI, Kotak, and Axis Bank.
- Steps include:
- Logging into net banking
- Selecting the IPO application option
- Choosing LG India IPO from the list
- Entering the bid price and quantity
- Approving the amount block request
- Waiting for allotment confirmation
3. Applying via Physical Forms
- Institutional and high-net-worth investors (HNIs) can apply using physical application forms available at designated bank branches, broker offices, and registrar outlets.
IPO Subscription & Allotment Details
- IPO Opening Date: To be announced
- IPO Closing Date: To be announced
- Allotment Date: Expected within one week post closure
- Listing Date: Expected on BSE & NSE within two weeks post closure
- Minimum Investment: Expected to be ₹14,000-₹15,000 per lot (subject to price band)
Strategic Growth and Market Outlook
With ambitious growth goals, LG India hopes to reach a $75 billion electronics revenue figure by 2030. It seeks to solidify its position in the fiercely competitive Indian consumer electronics market, specifically in the areas of smart devices, televisions, and home appliances.
Conclusion: A Pivotal Moment for LG India
With India being a prospering consumer electronics market, the IPO of LG will witness strong investor demand riding on its leadership in brands and market penetration. With SEBI approval now on the horizon, the focus now shifts to price, investor interest, and subscription figures, which will determine the way this landmark IPO will unfold in the next few weeks.
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