LG Electronics India is aiming to fetch as much as 774 billion rupees ($8.71 billion) in its long-pending initial public offering, cashing in on a busy IPO market with one of the largest offerings in India this year.
A public filing on Wednesday indicated that the appliance maker would sell the stock for 1,080-1,140 rupees per share. Bidding on the three-day sale of shares begins on October 7, and big anchor investors will be in a position to place bids on October 6.
The IPO will value up to 116 billion rupees (1.3 billion dollars) at the high-end of the price range of its Korean parent firm, LG Electronics Inc, which is selling a 15 percent stake of its company.
No new shares are being issued in the offering by LG Electronics India.
After its first filing of the IPO in December, LG Electronics had been looking to list in May, but postponed the sale of shares, citing market turbulence.
In India, October is an IPO month, with non-bank lender Tata Capital’s 1.75 billion issue, the largest issue in the country this year, and shared office space provider WeWork’s issue running approximately simultaneously.
The IPO also follows the Indian tax body reducing consumption taxes on a broad scope of goods, such as electronics, to 18 percent, compared to 28 percent, as a measure to boost demand during the festive season, which is a lucrative period in the economy.
The second-largest appliance producer in India is LG Electronics, which markets its brands like refrigerators, washing machines, and televisions.
According to consultancy firm RedSeer, it also competes with Whirlpool and Samsung in the domestic market, which is projected to rise by 12 percent a year until 2029.
According to data released by LSEG, companies in India collected approximately 909.8 billion rupees by IPOs as at September 30, compared with 770.6 billion rupees raised during the same period last year.
