Winning Bizness Desk

Mumbai – South Korean electronics giant LG Electronics is preparing to launch an Initial Public Offering (IPO) for its Indian unit, LG Electronics India Private Limited. According to a Bloomberg report, the company aims to raise approximately ₹12,582 crore ($150 million) through this IPO. The company has enlisted leading financial institutions, including Bank of America, Citigroup, JP Morgan Chase & Co, and Morgan Stanley, as IPO managers. Sources close to the development suggest that the IPO could be launched early in 2025. Once listed, LG Electronics India Private Limited could be valued at around $1.3 billion. The IPO, estimated at $100-150 million, is expected to mark a significant milestone for LG Electronics as it aims to strengthen its presence in the Indian market.

Strategic Move Towards $75 Billion Revenue Goal

The decision to bring the IPO aligns with LG Electronics’ broader strategy to expand its consumer electronics business. The company has set an ambitious target of reaching $75 billion in electronics revenue by 2030. This goal was outlined by LG Electronics CEO William Cho in an interview with Bloomberg Television in August. The upcoming IPO is part of the company's efforts to revitalize its consumer electronics division and increase its foothold in key markets, including India. India represents a crucial market for LG Electronics, and the company sees immense potential for growth in the country. The IPO would allow LG India to tap into the rapidly expanding consumer base and attract more global investors.

More Banks Likely to Join the IPO Process

While LG Electronics has already selected major banks to manage the IPO, there are indications that more financial institutions may be brought on board as the process moves forward. Sources suggest that the final size of the IPO could still change depending on market conditions and other factors. In preparation for the IPO, LG Electronics India is expected to file its draft papers with the Securities and Exchange Board of India (SEBI) as early as next month. This filing will formally kickstart the process, with the IPO likely to be launched in the first half of 2025.

India a Key Destination for Global Investors

India continues to attract global investors due to its strong growth prospects. Several multinational corporations, including Hyundai Motor, are also planning to list their Indian units. Hyundai’s IPO, in particular, is anticipated to be one of the largest IPOs in India, according to Bloomberg. LG Electronics' upcoming IPO is expected to further solidify its position in India’s booming consumer electronics market, offering investors an opportunity to participate in the company’s long-term growth.