LG Electronics India IPO coming soon as South Korean giant kicks off roadshows for $1.5 billion IPO

South Korean electronics major LG Electronics Inc. is gearing up to launch the mega initial public offering (IPO) of its Indian arm. According to a media report, LG Electronics Inc. has started roadshows to meet potential investors for its Indian unit IPO.

The report, citing people aware of the developments, suggests that LG India is working on an IPO that could raise between $1 billion and $1.5 billion from the primary market at a valuation of as much as $15 billion. However, the report added that these details could change as deliberations are ongoing.

LG Electronics has not yet confirmed or commented on the news. Meanwhile, another media report mentioned that LG Corp. chairman and CEO Koo Kwang-mo is likely to visit India in February to finalise plans for the mega IPO launch.

The timing of the IPO is raising eyebrows as the Indian stock markets are currently undergoing a rough patch. The benchmark equity indices have significantly fallen in the past few weeks amid FIIs sell-off and weak quarterly earnings. On February 18, NIFTY50 is trading at 22,840, down 118 points, or 0.52%. The BSE SENSEX, meanwhile, was trading 327 points, or 0.43%, lower at 75,669.

LG Electronics India filed the draft red herring prospectus (DRHP) for the public issue of its India unit with the capital market regulator Securities and Exchange Board of India (Sebi) on December 6, 2024.

The prospectus mentioned that LG Electronics India’s IPO would be an offer-for-sale (OFS) of up to 10.18 crore equity shares with a face value of ₹10 each, and the company would not receive any proceeds from the issue.

The DRHP also mentioned that Morgan Stanley, JPMorgan, Axis Capital, BofA Securities and Citi would be the lead managers of the issue.

LG Electronics would be the second major South Korean company after Hyundai Motor Co. to list its Indian unit. In October 2024, Hyundai Motor India Ltd was listed, raising ₹27,870 crore in the largest-ever Indian IPO. However, after listing, the IPO continues to trade below its IPO price band of ₹1960 per share.