New Delhi: The Rs 11,600-crore initial public offering (IPO) for LG Electronics India, the domestic arm of South Korea-based global electronics giant, is set to be the second biggest such offering in the current year. The biggest maiden public offering of the year so far will be the Rs 15,500-crore Tata Capital IPO.
Interestingly, both the IPOs are slotted to open and close in the same week: Tata Capital will open on October 6 and close on October 8 while LG Electronics offer will open on October 7 and close on October 9.
The shares are expected to be listed in the second week of October, most likely on October 14.
The home appliances to home entertainment maker LG Electronics have set a price band of Rs 1,080-1,140 per share for its mega offering. This IPO is entirely an offer for sale by its South Korean parent. In the IPO, the employees of the company could get a discount of Rs 108-per-share.
In addition to being the second biggest IPO of the year, the LG Electronics issue will also be one of the top 10 such offers to have hit the Indian market ever. Incidentally the biggest ever IPO in India was also by a South Korean major, Hyundai Motor India that exactly a year ago had raised Rs 27,859 crore.
The promoters of the Indian electronics and white goods giant are selling nearly 10.2 crore shares through this offer, translating to 15 per cent of the equity capital of the company.
At the upper end of the price band, the offer size translates to a little over Rs 11,600-crore. This would give the company a valuation of about Rs 77,400 crore or nearly $8.7 billion. The LG Electronics IPO is being lead managed by Axis Capital, Citigroup Global Markets India, Morgan Stanley India, JP Morgan India and BofA Securities India.