SEBI Allows LG Electronics India And Innovision To Raise Funds Through IPOs
SEBI Allows LG Electronics India And Innovision To Raise Funds Through IPOs
The two companies filed draft papers in December
The Securities and Exchange Board of India (SEBI) has approved the proposals of LG Electronics India Ltd and Innovision Ltd to raise funds through IPOs.
While LG Electronics plans to sell a 15 percent stake, Innovision includes a fresh issuance and an offer for sale.
LG Electronics is a subsidiary of the South Korean chaebol LG and Innovision is a manpower and toll plaza management services provider.
LG Electronics’ parent company will sell over 10.18 crore shares, amounting to a 15 percent stake, as per the Draft Red Herring Prospectus (DRHP).
It is the second South Korean company to tap the Indian stock market following the listing of Hyundai Motors India Ltd in October last.
Since the public issue is an offer for sale (OFS), LG Electronics will not receive IPO proceeds. The funds will go to its parent company in South Korea.
Recently, LG organized roadshows for the IPO of its Indian unit.
The company manufactures and sells washing machines, refrigerators, LED TV panels, inverter air-conditioners and microwaves. It has manufacturing units in Noida, Uttar Pradesh and Pune, Maharashtra.
Meanwhile, Innovision's proposed IPO is a mix of fresh issuance of Rs.255 crore and an OFS of up to 17.72 lakh equity shares by promoters Randeep Hundal and Uday Pal Singh.
The proceeds from the fresh issuance will be used to pay the company’s debts, fund working capital requirements and general corporate purposes.
Innovision provides manpower services, toll plaza management and skill development training to clients across India. It has been operating in 22 states and 3 union territories.
