LG Electronics Inc. of South Korea has become the most recent multinational corporation to proceed with listing plans for its India unit. The consumer durables giant is preparing to submit draft papers to the market regulator for a big-bang initial public offering (IPO) by its subsidiary LG Electronics India multiple industry, said the moneycontrol report.
It is anticipated that the draft red herring prospectus will soon be electronically filed with Sebi. According to one of the people cited above, ‘this is a really big deal and the issue size is expected to be around USD 1.8 bn or Rs 15,237 crore.’
LG IPO’s potential size
If plans go through, the LG Electronics India public offering, which is expected to be worth about USD 1.8 billion (Rs 15,237 crore), will join the top five of India’s largest initial public offerings (IPOs), which also include Hyundai Motor India, LIC, Paytm, and Coal India.
‘This is a pure OFS or offer for sale by the parent,’ a second individual added.
Involved entities
Axis Capital, Citi, BofA Securities, JPMorgan, and Morgan Stanley are the investment banks involved in the transaction. Cyril Amarchand Mangaldas is the bank’s counsel, and Shardul Amarchand Mangaldas is the company’s counsel.
Two additional people with knowledge of the listing plans shared that a public listing would strengthen ties with India and that the Indian market offers attractive multiples. said people with knowledge of the IPO citied by the Moneycontrol.
