SEBI gives green signal for LG Electronics India, Innovision IPOs but returns offer documents of Neilsoft

LG Electronics India IPO

The Securities and Exchange Board of India (SEBI) has given a green signal to LG Electronics India, and Innovision to float their initial public offerings. It however has returned the offer documents of Neilsoft.

The capital markets regulator has issued observation letter to LG Electronics India on March 13, and Innovision on March 12. In SEBI parlance, the issuance of observation letter means the company can launch its IPO within the next on year from the receipt of the said letter.

LG Electronics India IPO

Home appliances and consumer electronics major LG Electronics India had filed its IPO papers with the SEBI on December 6, 2024. The IPO comprises of entirely an offer-for-sale of 10.18 crore equity shares by Korean promoter LG Electronics Inc with no fresh issue component.

This means the entire IPO proceeds will go to the promoter, and the company will not receive any money from the IPO. Hence, the main object is to achieve the benefits of listing equity shares on the stock exchanges.

LG Electronics expects that listing of the equity shares will enhance its visibility and brand image and provide liquidity and a public market for the equity shares in India.

As per the earlier reports of Moneycontrol, the South Korean promoter is looking for up to $15 billion valuation for its Indian subsidiary. Further, the issue size has not been disclosed but that could be more than Rs 15,000 crore.

In the last financial year ended March 2024, profit from continuing operations stood at Rs 1,511 crore, increasing by 12.1 percent from Rs 1,348 crore in the previous financial year. Revenue grew by 7.5 percent to Rs 21,352 crore, increasing from Rs 19,864.6 crore in the same period.

Further, profit stood at Rs 679.7 crore on revenue of Rs 6,408.8 crore for the quarter ended June 2024.

Morgan Stanley India Company, JP Morgan India, Axis Capital, BofA Securities India, and Citigroup Global Markets India are the book running lead managers to handle the big public issue.

Innovision IPO

The Gurgaon-based company that provides manpower services, toll plaza management and skill development training had filed IPO papers with the regulator on December 13, 2024. The IPO consists of fresh issuance of equity shares worth Rs 255 crore, and an offer-for-sale of 17.71 lakh shares by promoters.

Promoters Lt Col Randeep Hundal, and Uday Pal Singh will be selling up to 8.85 lakh shares each via offer-for-sale.

The company intends to utilise fresh issue proceeds mainly for repaying debt and working capital requirements, and the remainder for general corporate purposes.

Emkay Global Financial Services will be acting as the merchant banker for Innovision IPO.

However, the SEBI has returned IPO documents of Neilsoft on March 10. The Pune-based engineering services and solutions (ER&D) company had filed draft red herring prospectus with the SEBI on December 26, 2024. It had proposed to raise Rs 100 crore via fresh issue and the remaining amount by selling 80 lakh shares in the offer-for-sale.