LG Electronics India, Innovision Get Sebi Nod for IPOs

New Delhi, Mar 18 (PTI) LG Electronics India Ltd, a subsidiary of the South Korean chaebol LG, and manpower and toll plaza management services provider Innovision Ltd have received Sebi's approval to raise funds through Initial Public Offerings (IPOs), an update with the capital markets regulator showed on Tuesday.

LG Electronics India and Innovision filed draft IPO papers with Sebi in December and obtained the regulator's observations on March 13 and March 12, respectively.

In Sebi's parlance, obtaining the observations means its go-ahead to float the public issue.

As for LG Electronics India, it filed preliminary papers with Sebi in December for an IPO wherein the parent company will sell over 10.18 crore shares, amounting to a 15 per cent stake, as per the Draft Red Herring Prospectus (DRHP).

The company did not disclose the total issue size, but people familiar with the matter have pegged the IPO size at Rs 15,000 crore.

This will be the second South Korean company to tap the Indian stock market following the listing of Hyundai Motors India Ltd in October last year.

Since the public issue is completely an offer for sale (OFS), LG Electronics India will not receive any IPO proceeds. The funds raised will go to the South Korean parent.

Last month, LG Electronics started roadshows for the upcoming IPO of its Indian unit.

LG Electronics India manufactures and sells products, including washing machines, refrigerators, LED TV panels, inverter air conditioners, and microwaves. It has manufacturing units in Noida (UP) and Pune.

Innovision's proposed IPO is a mix of fresh issuance of Rs 255 crore and an OFS of up to 17.72 lakh equity shares by promoters -- Randeep Hundal and Uday Pal Singh--, according to the draft papers.

Proceeds from the fresh issuance will be used towards payment of debt, funding working capital requirements of the company and for general corporate purposes.

Innovision is in the business of providing manpower services, toll plaza management and skill development training to clients across India. As on September 30, 2024, it had operations in 22 states and 3 union territories of India.

Meanwhile, Sebi has returned the draft IPO documents of technology-driven engineering services and solutions company Neilsoft on March 10 without disclosing any reason. The preliminary documents were filed in December.

The Pune-headquartered company's proposed IPO comprises a fresh issue of shares worth Rs 100 crore and an OFS of 80 lakh shares by promoters and other selling shareholders, according to the draft papers.