LG Corp Chairman in India Ahead of LG Electronics IPO

New Delhi, Feb 24 (PTI) LG Corporation Chairman and CEO Kwang Mo Koo is on a two-day visit to India ahead of the proposed initial public offering of its Indian unit, according to industry insiders.

Koo is meeting with the senior leadership of LG Electronics India, including its Managing Director, to review the performance and take stock of the preparations for the local subsidiary's upcoming IPO, they added.

He is also expected to discuss investment proposals for the Indian market, one of the largest markets for the South Korean Chaebol.

It is unclear whether he is scheduled to meet with any top policymakers here.

He is likely to visit the Greater Noida plant of LG Electronics India.

An e-mail sent to LG Electronics India remained unanswered.

Last week, LG Electronics started roadshows for the upcoming initial public offering of its Indian units, where the South Korean chaebol will sell over 10.18 crore shares amounting to a 15 per cent stake, which, according to some reports, may raise up to USD 1.5 billion.

LG has plans to conduct a similar roadshow to other cities to woo potential investors, they said.

Earlier on December 6, 2024, LG Electronics India had filed preliminary papers with Sebi for an initial public offering wherein the parent company will sell over 10.18 crore shares amounting to a 15 per cent stake.

After the listing of Hyundai Motors India Ltd, LG Electronics will be the second South Korean company to tap the Indian stock market.

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

LG Electronics India is a leading player in major home appliances and consumer electronics. The company products are sold to B2C and B2B customers in India and internationally. It also provides installation, repair, and maintenance services for all its products.

LG Electronic India's revenue from operations was Rs 64,087.97 crore for the financial year ended March 31, 2024.