LG discussing its listing in India’s stock market? Reports Korean biz journal.
According to Invest Chosun, the financial division of the Chosun media group in Korea,
LG Electronics is considering launching an initial public offering (IPO) for its Indian subsidiary, LG Electronics India Pvt Ltd (LGEIL). The IPO can raise a fund of approximately $500M.
Published on Thursday, the report claimed that the LG Group has engaged with international investment banks and domestic legal firms to explore the possibility of listing LGEIL in the domestic stock market.
While JP Morgan and Morgan Stanley are potential candidates to oversee the IPO, no official confirmation has been made by any of the stakeholders or LG.
The South Korean tech giant plans to capitalise on the robust sales of its Home Appliance Division in India to generate significant funds via the stock market, specifically focusing on European markets. This strategy could raise hundreds of billions of South Korean won, claims Chosun.
LGEIL’s net assets are valued at approximately $825 million (equivalent to 1.1466 trillion won), and its corporate worth is expected to range from $2.1 billion (about 3 trillion won) to $4.3 billion (approximately 6 trillion won).
This is not LG’s first decision of an IPO in India. The company had previously considered an IPO for LGEIL in the early 2000s but postponed it due to unfavourable market conditions, opting instead to focus on establishing factories and dealerships, particularly in regions like Pune.
The report further highlighted that LG Electronics’ probable decision follows a recent action taken by Hyundai Motor, which submitted preliminary documents to the Securities and Exchange Board of India (SEBI) on June 14. Hyundai plans to offer up to 142 million shares out of 812 million in an IPO.
Based in Seoul, LG Electronics is a South Korean multinational corporation renowned for its appliances and consumer electronics. It specialises in various products, including TVs, computers, appliances, and air conditioners.
