Mumbai | 01-Oct-2025, 10:00 IST Filed on 30-Sep-2025 via media reports
South Korea’s LG Electronics is preparing to list its India arm through an initial public offering (IPO) as early as next week, with an indicated valuation of about ₹77,400 crore (≈ $8.7 billion), according to people familiar with the matter. The float is expected to be structured primarily as an Offer for Sale (OFS) by the parent, allowing public investors to participate in a well-known consumer-durables franchise without immediate dilution from fresh issuance.
What’s in the IPO
LG’s parent company is expected to sell around 10–15% stake in its India arm through the IPO, which will run for three days next week. The final share price will depend on how investors value similar appliance companies and how much interest comes from mutual funds and foreign investors. Since this is an offer for sale (OFS), the money raised will go to the parent company, not to LG India itself.
Why It Matters
LG India is among the most visible brands in consumer electronics and home appliances—spanning refrigerators, ACs, washing machines, TVs and kitchen appliances—backed by nationwide dealership networks and a deep service footprint. The listing gives Indian investors direct exposure to a large, diversified consumer-durables platform at scale, while providing the parent company with liquidity and a market-based valuation reference for its India business.
Operations & Growth Drivers
LG plans to expand its manufacturing in India, so it can rely less on imports and cut costs. The company is focusing on a wider product range, adding more premium products like OLED TVs and inverter ACs. Sales usually rise during the festive season and summer months, giving a boost to revenue. LG’s strong presence in smaller cities and towns also helps it compete better against both international and local brands.
Financials of the company
Risks & Watch-outs
- OFS-only structure: No primary capital to the Indian unit; future capex relies on internal accruals or separate fundraising.
- Valuation sensitivity: Premium multiples require sustained growth and margin stability; any demand softness can de-rate the story.
- Competitive intensity: Multinational and domestic players are active across price points; promotions and channel incentives can pressure margins.
- Macro & FX: Currency swings and commodity costs (steel, copper, plastics) influence input prices; hedging and pricing power are key.
Outlook
If pricing leaves room for upside, the IPO could see strong institutional and retail participation, given brand recognition, operating scale, and a broad product portfolio. Listing would also deepen the consumer-durables representation on Indian exchanges, offering investors an additional large-cap alternative within discretionary consumption. Post-listing performance will likely track festive-season sell-through, capacity ramp-ups, and margin execution amid competitive intensity.
