LG Electronics garners Rs 3,475 cr from anchor investors ahead of IPO

New Delhi, Oct 6 (PTI) LG Electronics India Ltd, the Indian arm of South Korea's LG conglomerate, on Monday collected Rs 3,475 crore from anchor investors, just a day before its initial share sale opening for public subscription.

The anchor book received widespread participation from foreign investors, including the Singapore government, Goldman Sachs, Fidelity Funds, BlackRock Global Funds, Abu Dhabi Investment Authority and Government Pension Fund Global, according to a circular uploaded on BSE's website.

Domestic institutional investors, such as SBI Mutual Fund (MF), HDFC MF, ICICI Prudential MF, Kotak MF, SBI Life Insurance Company, HDFC Life Insurance Company, and ICICI Prudential Life Insurance Company have been allotted shares in the anchor round.

LG Electronics India has allotted 30,481,539 equity shares to 149 funds at Rs 1,140 apiece, the circular showed.

The much-awaited Rs 11,607-crore initial public offering (IPO) will open for subscription on October 7 and close on October 9. The price band has been set at Rs 1,080 to Rs 1,140 per share, valuing the company around Rs 77,400 crore at the upper end.

This will be the second South Korean company to tap the Indian stock market, following the listing of Hyundai Motors India Ltd in October last year.

The IPO, entirely an offer-for-sale of 10.18 crore shares, representing about 15 per cent stake, by the South Korea-based parent.

Since the public issue is completely an offer for sale(OFS), 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's products are sold to both B2C and B2B customers in India and abroad. It also provides installation, repair, and maintenance services for all its products.

The company manufactures and sells products, including washing machines, refrigerators, LED TV panels, inverter air conditioners, and microwaves. It has manufacturing units at Noida (UP) and Pune.

In terms of issue allocation, 50 per cent of the IPO is reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors, and the remaining 15 per cent for non-institutional investors.

LG Electronics India is expected to make its stock market debut on October 14. PTI SP BAL