IPO Back on Track
LG Electronics India is set to move forward with its initial public offering after delaying plans earlier this year. According to people familiar with the matter, the South Korean giant’s India arm will launch its IPO in the week beginning October 6, aiming to raise about Rs 11,500 crore or $1.3 billion.
The IPO values LG Electronics India at around $9 billion. This is significantly lower than the $15 billion valuation the company was targeting when it filed its first draft prospectus in December. Market volatility in early 2025 had forced the company to pause the listing despite regulatory approval at that time.
With updated filings and fresh approval from the Securities and Exchange Board of India, LG Electronics is now preparing to file its final prospectus and begin the offering process.
Market Context and Competition
If completed, this IPO will be the third billion-dollar listing of the year after HDB Financial Services and Hexaware Technologies. Together, new public offerings in 2025 have already raised more than $10 billion, making it one of the strongest years for Indian capital markets despite global headwinds.
While LG’s lowered valuation shows the challenges global brands face in aligning expectations with Indian market realities, analysts believe the offering could still see strong demand from investors given the company’s brand strength, scale, and long-standing presence in the country.
Details of the Offering
The initial plan outlined the sale of 101.8 million shares, representing about 15 percent of LG Electronics India. Axis Bank, along with the Indian units of Morgan Stanley, JP Morgan, BofA Securities, and Citigroup, are advising the share sale.
The timing and size of the IPO may still change depending on market conditions, but sources indicated that preparations are in the final stages.
Investments in India
Alongside the listing, LG Electronics India has also announced fresh investments in local manufacturing. The company plans to invest about $600 million over the next four years in a new factory in Andhra Pradesh, which will be its third plant in India.
This expansion signals the company’s long-term commitment to India as both a key market and a manufacturing hub. The factory will boost production capacity, create jobs, and support LG’s plans to grow its footprint in consumer electronics and appliances.
A Crucial Test
For LG, this IPO will not only unlock value for its parent company but also test investor appetite for large-scale listings in India’s consumer technology space. A successful offering would further cement India’s reputation as one of the most attractive global destinations for capital raising.
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