• PAGE ONE
• INDEX
• HOME

LG Electronics plans Rs 100-crore IPO

Our Bureau

NEW DELHI, Jan. 4

LG Electronics India Ltd (LGEIL) is planning to hit the capital market with a $20-million (Rs 90-100 crore) initial public offer (IPO) this year.

The company will offload about 25 per cent of its equity and post-issue, the Korean parent's stake in the Indian subsidiary would be brought down to 75 per cent. The current paid-up equity of LGEIL is about $30 million.

Officials hope to tap the bourses in the first half of this year, but will do so only after the markets pick up. They are in the process of appointing lead managers to the issue and will begin valuation of the company shortly.

The company had envisioned a total investment of $289 million over a nine-year period to give it a major manufacturing presence in India in a range of white and brown goods and electronic components by 2005.

``In the first phase of investments from 1998-2001, the company invested $150 million to establish a manufacturing facility in Greater Noida, Uttar Pradesh,'' said Mr Ajay Kapila, Vice-president, Sales and Marketing, LGEIL.

LG Electronics is projecting a turnover of Rs 2,500 crore for 2001 against Rs 1,903 crore last year. The company has announced an accelerated thrust to its IT line of products. New segments which it intends to tap are notebook PCs, LCD TV monitors and fi nger-print monitors.

IT products currently contribute about 10 per cent of the total turnover, and are expected to contribute 20 per cent of the total turnover this year.

Assembly of PC monitors will commence in May and LG hopes to increase sales from three lakh units last year to 5 lakh units this year.

Telecom is another sector which the company would focus on. ``We will be launching our mobile phones shortly,'' Mr Kapila added.

LG ELectronics claimed an export turnover of $10 million last year and is targeting $20 million this year. It plans to add microwave ovens and refrigerators to its export product portfolio later this year.