In a significant development within the Indian capital markets, LG Electronics India Ltd and Innovision Ltd have both received the green light from the Securities and Exchange Board of India (Sebi) to proceed with their Initial Public Offerings (IPOs). This announcement was made public on Tuesday, reflecting the ongoing interest of foreign companies in the Indian market.

Details on LG Electronics India IPO

LG Electronics India, a subsidiary of the prominent South Korean conglomerate, filed its draft IPO documents in December. Sebi provided its observations, signaling approval, on March 13. The IPO will feature a complete offer for sale, permitting the parent company to divest over 10.18 crore shares, equating to a 15% ownership stake. Although the company has not disclosed the exact size of the offering, estimations suggest it may reach up to ₹15,000 crore.

This IPO marks a notable event as LG Electronics stands as the second South Korean firm to enter the Indian stock exchange following Hyundai Motors India’s listing in October of the previous year. It is important to note that since this is solely an offer for sale, LG Electronics India will not reap any financial gains from the IPO; funds raised will be allocated directly to its parent company in South Korea.

As part of its preparation, LG has commenced promotional roadshows to gather interest for its upcoming public offering. The company is known for manufacturing a broad array of consumer electronics and appliances, including washing machines, refrigerators, LED televisions, air conditioners, and microwaves, from its production facilities located in Noida (Uttar Pradesh) and Pune.

Innovision Ltd’s IPO Overview

Alongside LG Electronics, Innovision Ltd is also set to launch its IPO, comprising a mix of ₹255 crore in new shares and an offer for sale of up to 17.72 lakh equity shares from its promoters, Randeep Hundal and Uday Pal Singh. The funds raised through the fresh issuance will be targeted at debt repayment, working capital enhancement, and other corporate purposes.

Innovision operates in the manpower and toll plaza management sector and offers skill development training across India. The company has established a significant footprint, operating in 22 states and three union territories as of September 30, 2024.

Other IPO Developments

In another note regarding IPO activity, Sebi has returned the draft documents for the IPO of Neilsoft, a Pune-based technology-driven engineering services company, without providing a reason. Neilsoft had filed its preliminary IPO documents in December, proposing a fresh issue of shares valued at ₹100 crore, accompanied by an offer for sale of 80 lakh shares.