Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Capital Markets

LG Electronics India / Equity Capital Markets

<ul>
<li>After incorporating the company's FY25 results, we have tweaked our income statement estimates and valuations of LG Electronics India IPO.</li>
<li>Our base case valuation is target price of 1,514 INR which is 33% higher than the high end of the IPO price range. </li>
<li>It appears that the company wants the IPO to be successful and after much review the company has decided to price the IPO at more attractive levels to new investors. </li>
</ul>


After incorporating the company's FY25 results, we have tweaked our income statement estimates and valuations of LG Electronics India IPO.
Our base case valuation is target price of 1,514 INR which is 33% higher than the high end of the IPO price range. 
It appears that the company wants the IPO to be successful and after much review the company has decided to price the IPO at more attractive levels to new investors. 


LG Electronics India IPO: Attractive Upside

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/lg-electronics-india" target="_blank" data-smartkarma-citation="entities:44148:1" rel="noopener">LG Electronics India (123D IN)</a>/LGEIL, a subsidiary of <a href="https://www.smartkarma.com/entities/lg-electronics-inc" target="_blank" data-smartkarma-citation="entities:8814:1" rel="noopener">LG Electronics (066570 KS)</a>, aims to raise up to US$1.3 billion through a secondary offering.</li>
<li>I previously discussed the IPO in <a href="https://www.smartkarma.com/insights/lg-electronics-india-ipo-the-bull-case" target="_blank" data-smartkarma-citation="insights:182381" rel="noopener">LG Electronics India IPO: The Bull Case</a> and <a href="https://www.smartkarma.com/insights/lg-electronics-india-ipo-the-bear-case" target="_blank" data-smartkarma-citation="insights:183018" rel="noopener">LG Electronics India IPO: The Bear Case</a>. </li>
<li>In this note, I look at the recent updates outlined in the RHP. Overall, the RHP updates are supportive of the bull case.</li>
</ul>



LG Electronics India (123D IN)/LGEIL, a subsidiary of LG Electronics (066570 KS), aims to raise up to US$1.3 billion through a secondary offering.
I previously discussed the IPO in LG Electronics India IPO: The Bull Case and LG Electronics India IPO: The Bear Case. 
In this note, I look at the recent updates outlined in the RHP. Overall, the RHP updates are supportive of the bull case.


LG Electronics India IPO: Updates Support the Bull Case

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/lg-electronics-inc" target="_blank" data-smartkarma-citation="entities:8814:1" rel="noopener">LG Electronics (066570 KS)</a> is looking to raise US$1.3bn via part-selling its stake in <a href="https://www.smartkarma.com/entities/lg-electronics-india" target="_blank" data-smartkarma-citation="entities:44148:1" rel="noopener">LG Electronics India</a>.</li>
<li>LG Electronics India (LGEI) was the market leader in India in major home appliances and consumer electronics (excluding mobile phones) in terms of volume, as per Redseer Report.</li>
<li>We have looked at the company’s past performance in our previous note, in this note we talk about the RHP updates and refresh our peer comparison</li>
</ul>



LG Electronics (066570 KS) is looking to raise US$1.3bn via part-selling its stake in LG Electronics India.
LG Electronics India (LGEI) was the market leader in India in major home appliances and consumer electronics (excluding mobile phones) in terms of volume, as per Redseer Report.
We have looked at the company’s past performance in our previous note, in this note we talk about the RHP updates and refresh our peer comparison


LG Electronics India IPO - RHP Updates and Peer Comparison Refresh.

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/lg-electronics-india" target="_blank" data-smartkarma-citation="entities:44148:1" rel="noopener">LG Electronics India (123D IN)</a> is looking to list on the exchanges by selling 101.8m shares at a valuation of US$8.7bn and raising around US$1.3bn in its IPO.</li>
<li>The new valuation is around 24% lower than the rumoured valuation at the time of the DRHP filing last December.</li>
<li>The stock will not get Fast Entry to global indices. Inclusion at regular rebalances will commence in June 2026 but flow will be small given the low float.</li>
</ul>



LG Electronics India (123D IN) is looking to list on the exchanges by selling 101.8m shares at a valuation of US$8.7bn and raising around US$1.3bn in its IPO.
The new valuation is around 24% lower than the rumoured valuation at the time of the DRHP filing last December.
The stock will not get Fast Entry to global indices. Inclusion at regular rebalances will commence in June 2026 but flow will be small given the low float.


LG Electronics India IPO: Big Market Cap, Small Float -> Small Passive Flows

<ul>
<li>LG Electronics' BOD finally approved a plan to sell a 15% stake in LG Electronics India in an IPO to be completed in 2025.</li>
<li>According to local media, LG Electronics India is now valued at about US$13 billion which is higher than LG Electronics' market cap of US$8.8 billion. </li>
<li>Our base case valuation of LG Electronics India is implied market cap of 1,280 billion INR or US$14.4 billion.</li>
</ul>


LG Electronics' BOD finally approved a plan to sell a 15% stake in LG Electronics India in an IPO to be completed in 2025.
According to local media, LG Electronics India is now valued at about US$13 billion which is higher than LG Electronics' market cap of US$8.8 billion. 
Our base case valuation of LG Electronics India is implied market cap of 1,280 billion INR or US$14.4 billion.


LG Electronics' BOD Gives the Green Light for LG Electronics India IPO in 2025 - Updated Valuation

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

LG Electronics India (123D IN)

LG Electronics India IPO: Attractive Upside

Our base case valuation of LG Electronics India is target price of 1,514 INR which is 33% higher than the high end of the IPO price range.

Douglas Kim

LG Electronics India IPO: Updates Support the Bull Case

In this note, I look at the recent updates outlined in the RHP. Overall, the RHP updates are supportive of the bull case.

Arun George

LG Electronics India IPO - RHP Updates and Peer Comparison Refresh.

LG Electronics (066570 KS) is looking to raise US$1.3bn via part-selling its stake in LG Electronics India. In this note, we talk about the...

Sumeet Singh

LG Electronics India IPO: Big Market Cap, Small Float -> Small Passive Flows

The LG Electronics India IPO will raise US$1.3bn and value the company at US$8.7bn. Float is lower than 15%. That means no Fast Entry and the...

Brian Freitas

LG Electronics' BOD Gives the Green Light for LG Electronics India IPO in 2025 - Updated Valuation

LG Electronics India finalized the IPO price band of 1,080-1,140 rupees per share. It is seeking a valuation of up to 774 billion rupees ($8.7...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)