New Delhi: LG Electronics, a South Korean firm, is considering launching its Indian subsidiary, LG Electronics India Pvt Ltd (LGEIL), on the stock market with an IPO, reported by Korean media Invest Chosun.
LG Electronics decided to make this move after seeing Hyundai Motor's similar initiative. Hyundai submitted preliminary documents to the Securities and Exchange Board of India (SEBI) on June 14 for an IPO, planning to sell a maximum of 142 million shares from its total of 812 million.
The total public offering consists of selling 142.2 million equity shares with a face value of Rs 10, leading to a decrease of 17.5 percent in promoter ownership.
The upcoming IPO plans to raise about $3 billion or Rs 25,000 crore, making it one of India's biggest IPOs, second only to Life Insurance Corp of India's $2.5 billion issue in 2022, without offering new shares.
Allegedly, Hyundai India is planning to sell about 13 percent of its shares in the upcoming IPO. Even with this partial sale of the stake, the company's size is projected to produce close to Rs 25,000 crore, exceeding LIC's IPO record as India's largest. Industry specialists propose that Hyundai India going public may give the company an edge over top rivals in the Indian market like Maruti Suzuki, Tata Motors, and Mahindra & Mahindra (M&M).
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