New Delhi, Sep 30 (NationPress) LG Electronics India is preparing to enter the primary market as its initial public offering (IPO) is set to commence on October 7. The anchor book will be available for one day on October 6, followed by a public subscription period from October 7 to 9.

The parent company, LG Electronics Inc. of South Korea, plans to divest up to 10.18 crore equity shares through an offer-for-sale (OFS) mechanism, with no new shares being issued.

As the offering is entirely an OFS, the main goal of the IPO is to enable the promoter to sell shares and list the company's equity on domestic stock exchanges.

Details regarding the price range remain undecided.

The allotment of shares is set to be finalized by October 10, with the company's stock expected to debut on the BSE and NSE on October 14.

Previously, the prominent home appliance manufacturer announced its goal to complete the IPO of its Indian subsidiary by next month to raise funds for future expansion.

Industry insiders estimate that the value of LG Electronics India Ltd.'s IPO is around 1.8 trillion won ($1.28 billion), according to the Yonhap news agency.

LG Electronics confirmed that the board approved the sale of a 15 percent stake in the subsidiary as part of the IPO.

In December last year, LG Electronics submitted a preliminary listing application to initiate the IPO, and received conditional approval from SEBI in March.

The projected earnings far exceed the 1.1 trillion won in cash and cash equivalents that LG Electronics held by the end of June.

Analysts, including those from Moody's Investors Service, suggest that the listing of the Indian unit will bolster LG Electronics' financial position.

The IPO for LG Electronics India will follow closely after Tata Capital’s Rs 15,512-crore IPO, which opens on October 6.