The Securities and Exchange Board of India (SEBI) has granted approval for LG Electronics India and Innovision to proceed with their initial public offerings (IPOs). However, the market regulator has returned the IPO application submitted by Neilsoft.

The capital markets regulator issued an observation letter to LG Electronics India on March 13 and Innovision on March 12. In SEBI’s terminology, the issuance of an observation letter signifies that the company can launch its IPO within a year from the date of receipt.

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LG Electronics India IPO

Leading home appliances and consumer electronics brand LG Electronics India filed its draft IPO papers with SEBI on December 6, 2024. The proposed IPO will be a complete offer-for-sale (OFS), with 10.18 crore equity shares being sold by its Korean parent company, LG Electronics Inc. Since there is no fresh issuance of shares, the company itself will not receive any capital from the public offering.

The primary objective of the listing is to unlock the benefits of being a publicly traded entity on Indian stock exchanges. LG Electronics India believes that listing will enhance its market presence, improve brand recognition, and increase liquidity for its equity shares.

According to earlier reports from Moneycontrol, LG Electronics’ South Korean parent is seeking a valuation of up to $15 billion for its Indian subsidiary. Although the precise issue size remains undisclosed, estimates suggest that it could exceed ₹15,000 crore.

In the financial year ending March 2024, LG Electronics India posted a profit of ₹1,511 crore from continuing operations, reflecting a 12.1% growth from ₹1,348 crore in the previous fiscal year. Additionally, the company recorded a 7.5% rise in revenue, reaching ₹21,352 crore compared to ₹19,864.6 crore in the prior year.

For the quarter ending June 2024, the company reported a profit of ₹679.7 crore on revenue of ₹6,408.8 crore. This consistent growth underscores LG’s strong market position and steady demand for its products in India.

Prominent investment banks, including Morgan Stanley India Company, JP Morgan India, Axis Capital, BofA Securities India, and Citigroup Global Markets India, have been appointed as book-running lead managers for the IPO. Their role will involve managing the issuance, ensuring regulatory compliance, and facilitating investor participation.

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Innovision IPO

Gurgaon-based Innovision, which specializes in manpower services, toll plaza management, and skill development training, submitted its IPO application to SEBI on December 13, 2024. The IPO will include a fresh issuance of equity shares worth ₹255 crore, alongside an offer-for-sale of 17.71 lakh shares by the company’s promoters.

Promoters Lt Col Randeep Hundal and Uday Pal Singh will each sell up to 8.85 lakh shares through the offer-for-sale component.

Innovision intends to utilize the net proceeds from the fresh issue primarily for repaying outstanding debts and fulfilling working capital requirements. The remaining funds will be allocated for general corporate purposes, supporting the company’s growth plans.

Emkay Global Financial Services has been appointed as the merchant banker for the Innovision IPO. The role of a merchant banker is crucial in facilitating the smooth execution of the IPO process, from financial structuring to investor engagement.

The company’s entry into the public markets is expected to enhance its visibility, attract institutional investors, and enable it to expand its operational capabilities. Given the increasing demand for manpower services and infrastructure-related management in India, Innovision’s listing could pave the way for future growth and expansion opportunities.

Neilsoft IPO Update

SEBI has returned the IPO draft papers of Neilsoft as of March 10, 2025. The Pune-based engineering services and solutions (ER&D) company had originally submitted its draft red herring prospectus (DRHP) on December 26, 2024. Neilsoft planned to raise ₹100 crore through a fresh issue while also selling 80 lakh shares via an offer-for-sale.

Although the specific reasons for SEBI returning the IPO documents were not disclosed, companies typically face such outcomes due to regulatory concerns, incomplete disclosures, or issues related to financial transparency. Neilsoft may need to revise and refile its prospectus to address SEBI’s concerns before proceeding with its IPO.

Neilsoft operates in the high-growth ER&D sector, which provides engineering design, product development, and digital solutions to industries such as automotive, aerospace, and industrial manufacturing. The company’s IPO was expected to help fund its expansion plans and strengthen its financial position.

If Neilsoft decides to refile its IPO documents after making the necessary revisions, it could still have the opportunity to tap into public market funding in the near future.

With SEBI’s approvals for LG Electronics India and Innovision, the Indian stock market is set to witness two significant public listings. These IPOs reflect the continued investor interest in diverse sectors, from consumer electronics to workforce solutions, further strengthening India’s capital markets.