LG Electronics to launch its ₹15,000cr IPO this October
What's the story
LG Electronics, the South Korean consumer electronics giant, is gearing up to launch an initial public offering (IPO) for its Indian arm. The company plans to raise around ₹15,000 crore through this share sale. Banking sources told The Economic Times that LG plans to launch the IPO in the first half of October.
Market strategy
SEBI has approved LG's public issue plan
The decision to launch the IPO in October comes after a period of waiting for stable market conditions. A banker familiar with the matter said, "The company was waiting for market conditions to stabilize before launching the issue, and it now sees October as the right window." The Securities and Exchange Board of India (SEBI) has already approved LG's public issue plan.
Offering details
LG to sell 15% stake in Indian arm
LG plans to sell 15% of its Indian arm through this IPO, which is about 10.2 crore shares. This will be the second-largest offering by a Korean company in India, after Hyundai's mega IPO in October last year. Morgan Stanley India, JP Morgan India, Axis Capital, BofA Securities India and Citigroup are the book running lead managers for the issue.
Market response
India's primary market sees bullish momentum
LG's IPO plans are in line with the bullish momentum in India's primary market. So far in 2025, nearly 30 IPOs have raised over ₹60,000 crore. The biggest one was HDB Financial Services's ₹12,500 crore issue. Looking ahead, around ₹70,000 crore worth of IPOs are lined up for the coming months from firms like Tata Capital (₹17,200 crore), Groww, and Meesho among others.
Valuation shift
Initial delay due to market volatility
Initially, LG had planned to launch its India IPO in April-May 2025. However, the plan got delayed due to market volatility and global headwinds such as trade disputes, changing US tariffs, and geopolitical tensions that impacted valuations. This led to a downward revision of the firm's valuation expectations from $15 billion to about $10.5-11.5 billion.