Winning Bizness Desk

Mumbai. South Korea’s LG Electronics is gearing up to launch the Initial Public Offering (IPO) of its Indian subsidiary. LG Electronics India has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), according to a notification by the Bombay Stock Exchange (BSE). According to a report by Moneycontrol, LG Electronics India Private Limited aims to raise approximately $1.8 billion (₹15,237 crore) through this IPO. This is an Offer for Sale (OFS), which involves the sale of 10.18 crore equity shares with a face value of ₹10 each. Notably, the company itself will not receive any income from this IPO.

Among India’s Top 5 Largest IPOs

With its substantial size, this IPO is set to rank among India’s top five largest public issues to date. The DRHP lists Morgan Stanley, J.P. Morgan, Axis Capital, BofA Securities, and Citigroup as the lead managers for the issue.

IPO Expected in Early 2025

Reports suggest the IPO may be launched in early 2025. Following the listing of shares, LG Electronics India Private Limited is expected to achieve a valuation of around $13 billion (₹1.10 lakh crore).

Strategic Move for Future Revenue Goals

LG Electronics is strategically bringing this IPO as part of its long-term growth plans. The company has set an ambitious target of achieving $75 billion (₹6.35 lakh crore) in electronics revenue by 2030. This move is part of LG's efforts to revitalize its consumer electronics business. William Cho, CEO of LG Electronics, highlighted these plans in an interview with Bloomberg Television in August. The IPO is seen as a step towards aligning the company’s operations with its growth objectives in the Indian market, one of its most significant global markets. By tapping into India’s vibrant capital market, LG Electronics aims to bolster its position in the competitive consumer electronics sector while pursuing its vision for substantial growth by the end of the decade.