Billion-dollar IPO coming! LG Electronics India may raise Rs 11,500 crore; valuation seen around $9 billion

LG Electronics India is reportedly preparing to launch its initial public offering in the week beginning October 6 to raise around Rs 11500 crore ($1.3 billion), a significant cut from its earlier expected valuation of $15 billion, Bloomberg reported citing sources familiar with the matter.The South Korean electronics giant secured regulatory approval for its updated draft red herring prospectus on Thursday and is expected to file the final version early next week, sources told Bloomberg. The revised valuation places the company at roughly $9 billion, down from the earlier projection when the IPO papers were first filed in December.Third billion-dollar IPO this yearThis would mark the third billion-dollar IPO after HDB Financial Services and Hexaware Technologies in a year that has already seen over $10 billion raised through new issues.If completed as planned, LG Electronics India’s share sale will be the third billion-dollar IPO in a year that has already seen more than $10 billion raised through new offerings, Bloomberg noted. The company first filed with the Securities and Exchange Board of India last December to sell a 15% stake, or 101.8 million shares. Approval was granted in March, but the IPO was deferred due to market volatility, which had reduced its valuation to $10.5–$11.5 billion.Separately, LG Electronics India said it will invest about $600 million over the next four years to set up a third manufacturing plant in Andhra Pradesh, reinforcing its expansion in the Indian market, Bloomberg reported. Discussions on the size and timing of the IPO are ongoing and could change.Axis Bank and the Indian units of Morgan Stanley, JPMorgan Chase & Co, BofA Securities Inc., and Citigroup Inc. are advising LG Electronics India on the share sale, according to Bloomberg. A company representative did not immediately respond to Bloomberg’s requests for comment.