New Delhi, Sep 30 (IANS) LG Electronics India is set to hit the primary market as its initial public offering (IPO) will open for subscription on October 7.

The anchor book will open for a day on October 6, followed by the public subscription window between October 7 and 9.

The South Korea-based promoter, LG Electronics Inc., will divest up to 10.18 crore equity shares through an offer-for-sale (OFS) route. The IPO will not include any fresh issue of shares.

Since the issue is entirely an OFS, the primary objective of the IPO is to facilitate the share sale by the promoter and to list the company’s equity on the domestic exchanges.

Specifics of the price band have not yet been decided.

Share allotment is scheduled to be finalised by October 10, and the company’s stock will make its trading debut on the BSE and NSE on October 14.

Earlier, the leading home appliance maker said on Tuesday it expects to complete the initial public offering (IPO) of its Indian subsidiary as early as next month to secure funding for future growth.

Industry sources estimate the value of LG Electronics India Ltd.’s initial public offering (IPO) at approximately 1.8 trillion won ($1.28 billion), according to Yonhap news agency.

According to LG Electronics, the sale of a 15 per cent stake in the subsidiary as part of the IPO process had been approved by the board.

In December of last year, LG Electronics filed a preliminary listing application to start the IPO process, and in March, SEBI granted it conditional approval.

The anticipated earnings greatly surpass the 1.1 trillion won in standalone cash and cash equivalents held by LG Electronics at the end of June.

The listing of the Indian unit, according to analysts like Moody’s Investors Service, would improve LG Electronics’ financial standing.

The LG Electronics India issue will be the second major public offering next week, coming right after Tata Capital’s Rs 15,512-crore IPO, which opens on October 6.

–IANS

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