Is LG Electronics Poised to Sell 15% Stake in Its Indian Division for IPO?
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Synopsis
LG Electronics is on the brink of launching an IPO for its Indian subsidiary, which could raise approximately $1.28 billion. This strategic move aims to bolster funding for future growth amid increasing demand for consumer durables in India. The listing is expected to significantly enhance LG's financial standing.
Key Takeaways
- LG Electronics is launching an IPO for its Indian subsidiary.
- The IPO is expected to raise approximately $1.28 billion.
- Analysts anticipate a valuation of over 12 trillion won for the Indian unit.
- Post-IPO, LG will maintain an 85 percent stake in the subsidiary.
- India's consumer demand is attracting global companies to the stock market.
Seoul, Sep 30 (NationPress) LG Electronics, a prominent home appliance manufacturer in South Korea, announced on Tuesday its intention to finalize the initial public offering (IPO) for its Indian branch as early as next month to acquire funds for future expansion.
The IPO for LG Electronics India Ltd. is projected to reach approximately 1.8 trillion won ($1.28 billion), as reported by industry insiders, according to Yonhap news agency.
LG Electronics disclosed that its board has sanctioned the divestiture of a 15 percent stake in the subsidiary as part of the IPO initiative. Specifics regarding the sale date and pricing are still pending, as per the company's press release.
The organization plans to file its comprehensive securities report to the Securities and Exchange Board of India (SEBI), with the offering anticipated to conclude once SEBI grants its final endorsement.
The IPO journey commenced in December when LG Electronics submitted a preliminary listing request and received conditional approval from SEBI in March.
The projected earnings significantly surpass LG Electronics' standalone cash and cash equivalents, which stood at 1.1 trillion won at the end of June.
Analysts, including those from Moody's Investors Service, have indicated that the Indian unit's public listing would enhance LG Electronics' financial standing.
The IPO is expected to appraise the Indian subsidiary at over 12 trillion won, substantially higher than its competitors listed on the Indian stock exchange. For instance, Voltas Ltd., a consumer electronics branch of India's Tata Group, is valued at around 7.2 trillion won, while Whirlpool India has a market cap of approximately 2.4 trillion won.
Post-IPO, LG Electronics will maintain an 85 percent stake in the subsidiary, according to the release.
The escalating demand for consumer durables in India has piqued the interest of numerous global firms in the domestic stock market. Last year, Hyundai Motor Co. raised a staggering $3.3 billion through its Indian listing.
Point of View
LG Electronics' IPO is a notable development in India's financial landscape. It illustrates the growing interest of global players in the Indian market, which is fueled by increasing consumer demand. This move could not only enhance LG's financial profile but also contribute positively to the local economy.
NationPress
30/09/2025
Frequently Asked Questions
What is the expected value of LG Electronics' IPO?
The IPO of LG Electronics India Ltd. is estimated to be around 1.8 trillion won, which is approximately $1.28 billion.
When does LG Electronics plan to complete the IPO?
LG Electronics expects to finalize the IPO process as early as next month.
How much stake is LG Electronics selling in its Indian unit?
LG Electronics has approved the sale of a 15 percent stake in its Indian subsidiary as part of the IPO process.
What is the projected valuation of LG's Indian subsidiary after the IPO?
The IPO is expected to value LG Electronics' Indian subsidiary at more than 12 trillion won.
How will this IPO affect LG Electronics' ownership in the Indian unit?
After the IPO, LG Electronics will retain an 85 percent stake in the Indian unit.
