LG Electronics is set to launch the initial public offering of its Indian subsidiary in the week beginning October 6, targeting approximately $1.3 billion (₹115 billion) in what would mark the third billion-dollar listing in India this year.
The South Korean electronics giant received approval from India’s Securities and Exchange Board for its revised prospectus, according to people familiar with the matter. The company now values its Indian operations at around $9 billion, representing a steep 40% discount from the $15 billion valuation it originally sought when first filing paperwork in December 2024.
The substantial markdown reflects the challenging market conditions that forced LG to postpone its listing plans earlier this year. Indian equity markets experienced significant corrections between February and April, with benchmark indices dropping 15% from their October 2024 peaks as global trade tensions and policy uncertainties weighed on investor sentiment.
LG’s Indian unit has demonstrated strong operational performance despite market headwinds. Revenue jumped 14.8% to ₹21,352 crore ($2.8 billion) in fiscal 2024, while net profit surged 43.4% to ₹331.8 billion won according to regulatory filings. The subsidiary maintains market leadership positions across major home appliances categories, holding the top spot in India’s offline retail channel for 13 consecutive years through 2023.
The offering, structured entirely as an offer-for-sale by the Korean parent company, will see LG Electronics Inc. divest a 15% stake totaling 101.8 million shares. Major investment banks including Morgan Stanley, JPMorgan Chase, Bank of America Securities, Citigroup India and Axis Bank are managing the transaction.
Market analysts note the timing coincides with renewed optimism in India’s IPO market, which has seen approximately ₹60,000 crore raised through 30 listings so far in 2025. HDB Financial Services and Hexaware Technologies completed the year’s other billion-dollar offerings ahead of LG’s planned debut.
Beyond the immediate capital raise, LG has committed to invest $600 million over four years to establish a third manufacturing facility in Andhra Pradesh state. The expansion reflects the company’s strategy to position India as both a key market and global production hub for its appliances business.
The reduced valuation, while disappointing for LG, aligns with broader market expectations for more realistic pricing among technology and consumer companies seeking public listings in 2025.
