LG Electronics mulls IPO for Indian arm amid $75-billion revenue goal

LG Electronics, the South Korea-based global supplier of consumer electronic products, is mulling over an initial public offering (IPO) for its Indian arm, the company's chief executive officer William Cho said in an interview.

Public issues launched in India in recent years have witnessed overwhelming response from investors. In 2024 so far, nearly $5 billion has been raised by more than 150 companies, as per LSEG data.

Cho, while noting that the IPO in India "is one of the many options we can consider", added that "nothing is confirmed" as of now. The company has not calculated the valuation at which it would consider a public issue, he further noted.

$75-billion revenue goal

The LG Electronics' CEO's remarks comes at a time when the company has set a goal to expand its revenue from electronics business to 100 trillion won ($75 billion) by 2030. In the last calendar year, 2023, the company clocked an overall revenue of $65 billion.

India is one of the key markets for LG, which competes directly with South Korean peer Samsung Electronics Co. Its revenue from the country climbed to 2.87 trillion won in January-June 2024, higher by 14% as compared to the year-ago period.

LG's net income from the Indian market jumped 27% year-on-year to 198.2 billion won during the first six months of 2024.

Cho's statement on LG's Indian IPO plans is the first public comment made by the company in this regard. Earlier, there have been media speculations about the company considering a public issue in the Indian market.

Meanwhile, Bloomberg reported earlier this month that Hyundai Motor, another major South Korean entity, is planning to raise around $3.5 billion through an IPO in India.