South Korean Chabol LG’s subsidiary company LG Electronics India Limited and Manpower and Toll Plaza Management Services Innovision Limited have been approved by market regulator SEBI to raise funds through the initial public offer (IPO). According to PTI news, SEBI has given information about this on Tuesday. LG Electronics India and Innovation filed a draft IPO document with SEBI in December and obtained regulatory comments on 13 March and 12, respectively. Let me tell you here, in the language of SEBI, obtaining comments means approval to bring public issue.
LG Electronics India will sell 10.18 crore shares
According to the news, for LG Electronics India, it filed initial documents with SEBI for IPO in December, in which according to the original company Draft Red Herring Prospects (DRHP), 10.18 crore shares will be sold equal to 15 percent of the share. The company did not disclose the total issue size, but people familiar with the case have estimated the IPO size to be Rs 15,000 crore. It will be the second South Korean company to enter the Indian stock market after the listing of Hyundai Motors India Limited in October last year.
LG Electronics India will not get any income from IPO
The public issue of LG Electronics India is a complete sale (OFS) for sale, so LG Electronics India will not get any income from the IPO. The raised amount will go to the South Korean original company. LG Electronics India manufactures and sells products including Washing Machine, Refrigerator, LED TV panel, inverter air conditioner and microwave. It has a manufacturing unit in Noida (UP) and Pune.
The proposed IPO of innovation is Rs 255 crore
According to draft papers, the proposed IPO of innovation is a mixture of up to 17.72 lakh equity stocks by new issues of Rs 255 crore and promoters – Randeep Hundal and Uday Pal Singh. The income received from the new issue will be used for debt payments, meeting the working capital needs of the company and for general corporate objectives. Innovation is in the business of providing manpower services, toll plaza management and skill development training to customers across India. The proposed IPO of the company with Pune headquarters includes a new issue of shares worth Rs 100 crore and OFS of 80 lakh shares by promoters and other sales shareholders.
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