LG Electronics received board approval Tuesday to proceed with its Indian subsidiary’s initial public offering, setting an October 7 launch date after months of delays tied to market turbulence.
The Seoul-based manufacturer plans to sell 101.8 million shares, representing a 15% stake, at 1,080 to 1,140 rupees each, according to people familiar with the matter. The offering values the unit at approximately 774 billion rupees ($8.7 billion), nearly 40% below the $15 billion valuation sought when paperwork was first filed last December.
The deal, expected to raise about 115 billion rupees ($1.3 billion) or 1.8 trillion won ($1.28 billion), marks the third-largest public offering in India this year, trailing Tata Capital and HDB Financial Services. Unlike those transactions, LG’s entire proceeds flow to the parent company through an offer-for-sale structure, leaving the subsidiary without fresh capital.
Market volatility forced LG to shelve the IPO in April despite securing conditional approval from India’s securities regulator in March. The company refiled updated financials to restart the process.
After the listing, LG Electronics will maintain an 85% ownership stake in its Indian operations, which the company describes as a market leader across refrigerators, washing machines and televisions.
