LG begins roadshows for $1.5 billion India IPO

MUMBAI: LG Electronics Inc. has initiated roadshows to meet with potential investors as part of the initial public offering (IPO) of its Indian unit. According to sources familiar with the matter, the South Korean company has commenced the process, moving forward with its listing plans.

The people in the know, who declined to be identified due to the confidential nature of the matter, stated that LG plans to list its Indian unit through an IPO in Mumbai this year.

Representatives for both LG Electronics and its subsidiary, LG Electronics India Limited, refused to comment on the roadshows scheduled to take place. Bloomberg News has previously reported that the IPO could potentially raise between $1 billion to $1.5 billion and value LG India at as much as $5 billion. It is essential to note that deliberations are ongoing and the details may be subject to change.

According to a prospectus filed with regulatory bodies in December, LG plans to sell as many as 101.82 million shares of its Indian unit. The company has enlisted the services of Axis Capital Limited, Bank of America Corp, Citigroup Inc., JPMorgan Chase & Co., and Morgan Stanley to manage the IPO process.

LG CNS launches $806 million IPO, aims to rejuvenate South Korea’s stock market, reports Bloomberg

LG Electronics’ move comes on the heels of another South Korean company, Hyundai Motor Co., listing its Indian unit last year, which marked the biggest IPO in Indian history with a record $3.3 billion raised. The listing helped cement India’s position as one of the world’s leading markets for first-time share sales.

However, there are indications that enthusiasm for the Indian stock market may be waning. Hyundai India’s stock price has dropped by about 6 percent since its October debut. The Sensex Index, a key gauge for the Indian stock market, has declined following nine consecutive years of gains. In contrast, major stock gauges in China and Hong Kong have witnessed significant increases, with double-digit growth recorded in some sectors.