Sol, 30 September (IANS). South Korean veteran electronics company LG Electronics said on Tuesday that it would sell 15 percent stake in its Indian unit through an IPO.
The company said the process of its Indian unit’s Initious Public Offering (IPO) will be completed earlier next month.
South Korean news agency Yonhap told the hawal of industry sources that the IPO of LG Electronics India Limited could be $ 1.28 billion (about Rs 11,300 crore).
LG Electronics said its board has approved the sale of 15 percent stake in the subsidiary under the IPO process. However, the details of the date of sales and pricing have not been fixed yet.
The company is planning to submit its final securities report to the Securities and Exchange Board of India (SEBI). The offer is expected to be completed after SEBI’s final approval is received.
LG Electronics started the IPO process in December by submitting the initial listing application and received conditional approval from SEBI in March.
Several analysts, including Moody’s Investors Service, have said that the listing of the Indian unit will further strengthen the financial position of LG Electronics.
The press release states that after the IPO, LG Electronics will have 85 percent stake in the Indian unit.
LG Electronics India trading in the consumer electronics sector in India. The company has a strong market share in fridge, AC, TV and other electronics. It is competed with other companies including Voltas, Godrej, Samsung and Whirlpool of Tata Group.
The increasing demand for consumer durable items in India has increased the interest of global companies in the local stock market. Last year, the other South Korean company Hyundai Motor Company raised a record of $ 3.3 billion through the listing of its Indian unit.
-IANS
ABS/