South Korean consumer electronics leader LG Electronics has confirmed the initial public offering (IPO) of its Indian subsidiary, LG Electronics India Ltd. The company’s board has approved the sale of 10.18 crore shares, resulting in a 15 percent dilution of its stake in the subsidiary; post-IPO, LG Electronics will retain an 85 percent ownership.
According to the Red Herring Prospectus, the IPO is scheduled to open from October 7 to 9, with the anchor book available for bidding on October 6. To formally announce the IPO and its pricing details, the Indian unit will hold a press conference on Wednesday.
Investment banking sources indicate that due to significant investor interest, the IPO size may range between ₹11,000 to ₹12,000 crore, somewhat less than the previously anticipated ₹15,000 crore outlined in draft documents submitted last year. Although the IPO received regulatory approval for a May listing, LG withdrew its plans in April, citing uncertain market conditions. After revisiting the IPO discussions in July, it was reported that the company considered a reduced size of ₹9,000 to ₹10,000 crore or even lower.
“There is good investor appetite, and they may be looking at a larger size,” stated an investment banker involved in the process. In light of Tata Capital’s decision to adjust its IPO pricing to enhance market appeal, LG is likely to seek a compromise between its expectations and prevailing market conditions.
LG Electronics India, which specializes in a wide array of consumer electronics and household appliances, indicated in its updated RHP that in the June quarter, 78.37 percent of its revenue came from the Home Appliances and Air Solutions division. Specifically, revenue contributions included 34.59 percent from refrigerators, 18.48 percent from washing machines, 20.4 percent from air conditioners, and 16.71 percent from televisions.
In the June quarter, the company reported a net profit of ₹513.3 crore, reflecting a 24.5 percent decline year-over-year, while total revenue decreased by 2.3 percent to ₹6,263 crore. LG noted a decrease in market share for certain products from 2021 to 2024, attributing the decline in refrigerators, washing machines, and panel televisions to a strategy of not participating in basic entry price segments.
Published on September 30, 2025
