LG Electronics India seeks $8.7 billion valuation in October IPO

LG Electronics Inc.’s India arm is set to launch its initial public offering on Oct. 7 and is seeking a valuation of as much as 774 billion rupees ($8.7 billion) for the unit, according to people familiar with the matter. 

The South Korean white goods major is offering as many as 101.8 million shares or a 15% stake, for 1,080 rupees to 1,140 rupees per share, the people said, asking not to be identified as the information is private.  

The offering would raise about 116 billion rupees at the top of the price range. At the peak valuation, the IPO could make LG’s unit the number one household appliances firm on Indian bourses by market value.  

 

Discussions are ongoing, and the size and timing of the IPO may still change, the people said. A representative for LG Electronics didn’t respond immediately to requests for comment. 

LG Electronics India Ltd. got regulatory approval for its updated draft red herring prospectus on Thursday and filed the final version on Tuesday. 

It is set to become the fourth billion-dollar IPO to hit India’s market in 2025 after HDB Financial Services Ltd., Hexaware Technologies Ltd. and Tata Capital Ltd.. Tata Capital’s 155 billion-rupee IPO will open on Oct. 6.  

The broader market has struggled this year, with the Nifty 50 Index up 4% and gauges for mid- and small-sized firms flat to lower. However, that has not dampened the mood for new issues. Companies raised over $11 billion rupees through IPOs, about a fifth more compared with the same period last year, according to data compiled by Bloomberg.  

LG Electronics India Ltd. first filed papers with the Securities and Exchange Board of India in December. While the approval came through in March, the company deferred the issue because of market volatility around that time. 

Axis Bank Ltd., along with the Indian units of Morgan Stanley, JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc., are the advisers to the share sale, according to the draft prospectus.