LG Electronics IPO: Could raise anywhere between Rs 15,000 and Rs 10,000, reports

Kolkata: According to data, 52 IPOs have been floated in 2025 so far. The IPO rush is continuing this year despite the secondary market moving sideways for quite a few weeks due to significant dilution of stake by foreign institutional investors. Due to the buoyancy in investor sentiment in the primary market, companies are lining up big issues. Reports have stated that South Korean giant LG Electronics is on the way to hit Dalal Street next month with a big IPO that could raise anywhere between Rs 10,000 and Rs 15,000.

LG Electronics is going to offers shares of its Indian arm. Since the biggest issue so far this year has been from HDB Financial which raised Rs 12,500 crore, the LG IPO can become the biggest if it raises close to Rs 15,000. By the way, the credit of floating the biggest IPO by in India belongs to a South Korean company Hyundai Motor new issue that mopped up Rs 27,858.75 crore in October 2024.

Reports have stated that LG Electronics intend to raise Rs 15,000 while other reports have said that the company trimmed valuations and wants to raise Rs 10,000 after it reworked its plans recently in light of new developments in the country's equity markets. While one report has stated that LG Electronics will sell 15% of its stake, another report put the level of dilution at 10%. The valuation of the company that was earlier done at Rs 1 lakh crore, has been scaled down by about 20% reports indicated. The IPO would have come earlier but was pushed back due to the volatility in the equity market.

Since the IPO will be fully an offer for sale, the proceeds of the issue will not accrue to LG India at all. As much as 50% will be reserved for institutional investors, 35% earmarked for retail investors and 15% for high-networth investors. The IPO lead managers are Axis Capital, Morgan Stanley, BofA Securities India and Citigroup Global Markets India.

LG Electronics was one of the first South Korean companies to come to India after the economic liberalisation. ACs, washing machines, microwave ovens, refrigerators, television sets are the chief products of the company in the Indian market. It began manufacturing in India 27 years ago.

For the records, LG Electronics filed DHRP with Sebi on December 9, 2024 and the application was approved by the market regulator on March 13 this year. 

HDB Financial IPO raised Rs 12,500 crore through a fresh issue of 3.38 crore shares and offer for sale of 13.51 crore shares. The bid opened on June 25 and continued till June 27. The shares were listed in both BSE and NSE on July 2. HDB Financial IPO price band was fixed at Rs 740.00.

The largest IPO in Indian stock market also belongs to another South Korean giant Hyundai Motor, which raised Rs 27,858.75 crore in October last year. The price of a share was Rs 1,960 and the bid opened on October 15 and continued till October 17, 2024. The shares were listed on BSE and NSE on October 22.