LG India Files DRHP

New Delhi: LG Electronics India Ltd, the Indian arm of the South Korean company, on Friday filed preliminary papers with capital markets regulator Sebi to float an initial public offering (IPO). The proposed IPO is entirely an offer for sale (OFS) of 10.18 crore equity shares by promoter LG Electronics Inc with no fresh issue component, according to the draft red herring prospectus (DRHP). Its South Korean parent company LG Electronics Inc will sell 10,18,15,859 equity shares of face value of Rs 10 each, according to DHRP.

Post-offer, its shareholding will be diluted by 15 per cent to 57.69 crore shares in the company. Since the public issue is completely an OFS, LG Electronics India will not receive any proceeds from the IPO. In its draft papers, LG Electronics India said it expects the listing of the equity shares will enhance its visibility and brand image and provide liquidity and a public market for the shares. LG Electronics India is a leading player in major home appliances and consumer electronics. The company products are sold to both B2C and B2B customers in India and internationally.