Gearing up for its long-awaited ₹150 billion IPO, LG Electronics is looking to engage investors through roadshows. Chief Kwang Mo Koo will visit India to finalise plans.
LG Electronics Inc. has reportedly initiated roadshows to engage potential investors in its Indian unit’s planned initial public offering (IPO). The South Korean conglomerate recently launched the process, moving forward with its listing plans, and the IPO is expected to take place in Mumbai later this year, previously reported by Bloomberg News.
According to the Economic Times, the ₹150 billion IPO, likely to be launched between April and May, is anticipated to raise between $1 billion and $1.5 billion. It could value LG India at up to $15 billion (almost ₹2.1 trillion), as the company plans to sell as many as 101.82 million shares.
Axis Capital Ltd., Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co., and Morgan Stanley are managing the offering.
LG Electronics India declined to comment on the roadshows. However, another report by ET confirmed that Kwang Mo Koo, Chairman and CEO of LG Corp, the parent company of all LG businesses, is set to visit India this month.
The trip, planned for around February 24, will mark the first time in over a decade that Koo will travel to India for business. His visit is expected to focus on finalising the IPO plans for LG Electronics India and exploring new investment opportunities in manufacturing displays and components in India.
Moreover, Koo is also overseeing plans to sell approximately 15% of the company in the upcoming IPO.
LG Electronics India happens to be the largest of LG Corp’s businesses in India, where the firm also has a presence in the chemicals sector. LG is one of the world’s leading producers of OLED and IPS displays, which are used in products ranging from TVs and mobile phones to automotive and commercial displays.
Additionally, LG’s subsidiary LG Innotek produces components such as camera modules and photomasks for industries like automotive, mobiles, and semiconductors. But these operations are not yet established in India, unlike rival Samsung, which already has a display production unit in the country.
However, the company is also planning to establish a new factory in Sri City in Andhra Pradesh.
It remains unclear whether Koo will meet with Indian government officials or ministers during his visit. However, LG Electronics Inc’s CEO William Cho last visited India in 2023 to review local operations and expand production.
In December, LG Electronics India filed its draft red herring prospectus with SEBI for the IPO. The proposed offering would make it one of India’s largest IPOs, potentially ranking fifth after Life Insurance Corporation, Hyundai Motors, Paytm, and Coal India.
