Entry of new players continues in the IPO market. Now as a new player, the Indian unit of the South Korean company i.e. LG Electronics India Limited has started preparations for its IPO. The company on Friday filed preliminary documents with capital markets regulator SEBI for its initial public offering (IPO). According to the draft red herring prospectus (DRHP), the proposed IPO is entirely an offer for sale (OFS) of 10.18 crore equity shares by promoter LG Electronics Inc, with no new issue component, PTI reported.
The company will sell this many equity shares
According to the news, the draft red herring prospectus states that LG Electronics Inc. will sell 10,18,15,859 equity shares of face value Rs 10 each. After the offer, its shareholding in the company will come down by 15 per cent to 57.69 crore shares.
It should also be mentioned here that since the public issue is completely OFS, LG Electronics India will not earn any income from the IPO. LG Electronics India said it expects the listing of equity shares to further enhance its visibility and brand image. Also, liquidity and public market will be available for shares.
Who are the merchant bankers of this issue?
LG Electronics India is a leading player in home appliances and consumer electronics. The company's products are sold to both B2C and B2B customers in India and internationally. It also provides set up, repair and maintenance services for all its products.
Image Credit: India_Tv.