South Korean Giant to Offer 15% Stake in Landmark Indian Stock Market Entry
LG Electronics India Ltd, a subsidiary of South Korea’s LG Corporation, has received the green light from India’s market regulator, the Securities and Exchange Board of India (SEBI), to launch its highly anticipated ₹15,000 crore initial public offering (IPO). This move positions LG Electronics India as the second South Korean company to enter the Indian stock market, following Hyundai Motors India Ltd, which listed in October last year.
LG Electronics India’s IPO: A Landmark Move
According to sources familiar with the matter, LG Electronics India filed its Draft Red Herring Prospectus (DRHP) with SEBI in December 2024. The IPO will be entirely an offer for sale (OFS), with the parent company offloading over 10.18 crore shares, amounting to a 15% stake.
Since this IPO is structured as an OFS, LG Electronics India itself will not receive any proceeds from the public issue. Instead, all funds raised will go directly to the South Korean parent company, LG Electronics Inc.
IPO Size and Market Positioning
While the company has not publicly disclosed the final issue size, market sources estimate the IPO to be valued at approximately ₹15,000 crore, making it one of the largest public issues by a consumer electronics firm in India.
With India emerging as a crucial market for multinational corporations, LG Electronics’ decision to list in the country underscores its commitment to the region and its ambitions for long-term growth.
Pre-IPO Roadshows and Business Strength
To generate investor interest, LG Electronics India commenced IPO roadshows last month, engaging with domestic and global institutional investors.
LG Electronics India is a dominant player in the Indian home appliances and consumer electronics market, serving both B2C (business-to-consumer) and B2B (business-to-business) segments. Its portfolio includes:
- Refrigerators
- Washing Machines
- LED TV Panels
- Microwave Ovens
- Inverter Air Conditioners
The company also offers installation, repair, and maintenance services, reinforcing its stronghold in India’s booming consumer electronics and home appliances sector.
Manufacturing and Financial Performance
LG Electronics India operates two major manufacturing units in:
- Noida, Uttar Pradesh
- Pune, Maharashtra
The company’s financials reflect its strong market presence and steady growth trajectory. For the financial year ending March 31, 2024, LG Electronics India reported revenue from operations of ₹64,087.97 crore, positioning it as a leading player in India’s electronics industry.
Investment Banks Handling the IPO
A consortium of top investment banks and financial institutions has been appointed as the book-running lead managers (BRLMs) for the IPO. These include:
- Morgan Stanley India
- J.P. Morgan India
- Axis Capital
- BofA Securities India
- Citigroup Global Markets India
A Major Step for LG Electronics in India’s Capital Markets
With SEBI’s approval in place, LG Electronics India is set to become a key player in India’s stock market, attracting both institutional and retail investors eager to capitalize on the company’s strong brand presence and growing market opportunities.
As South Korean firms continue to expand their footprint in India, LG Electronics India’s IPO is expected to be a landmark event, further strengthening the economic ties between the two nations.
