LG Electronics India Gears Up for Mega IPO, Aims to Raise Up to $1.5 Billion
South Korean electronics giant LG Electronics Inc. is preparing for the mega initial public offering (IPO) of its Indian arm, with roadshows already underway to attract potential investors. According to media reports, the company is aiming to raise between $1 billion and $1.5 billion, valuing the Indian unit at up to $15 billion. However, these figures remain subject to change as discussions continue.
While LG Electronics has yet to confirm the IPO details, another report suggests that LG Corp. Chairman & CEO Koo Kwang-mo may visit India in February to finalize the plans
IPO Amid Market Volatility
The timing of the IPO is drawing attention, given the recent downturn in Indian stock markets. On February 18, the NIFTY50 fell 118 points (0.52%) to 22,840, while the BSE SENSEX declined 327 points (0.43%) to 75,669, amid **FII sell-offs and weak corporate earnings.
IPO Details & Lead Managers
LG Electronics India filed its Draft Red Herring Prospectus (DRHP) with SEBI on December 6, 2024. The IPO will be a pure offer-for-sale (OFS) of 10.18 crore equity shares, meaning LG will not receive any proceeds from the issue.
Global investment banks Morgan Stanley, JPMorgan, Axis Capital, BofA Securities, and Citi will serve as lead managers for the IPO.
Second South Korean Giant to List in India
If successful, LG Electronics India will become the **second major South Korean company to list its Indian unit, following Hyundai Motor India Ltd., which went public in October 2024, raising ₹27,870 crore in India’s largest-ever IPO. However, Hyundai’s stock has struggled to stay above its IPO price of ₹1,960 per share.