South Korean electronics giant LG Electronics Inc. plans to raise up to ₹11,628 crore through an initial public offering (IPO) of its Indian subsidiary, offering as many as 10.2 crore shares. This valuation places LG Electronics India at approximately $8.6 billion at the upper end of the price range, which is set between ₹1,080 and ₹1,140 per share.
In addressing the timing of the IPO amidst geopolitical uncertainties and fluctuating market conditions, Managing Director Hong Ju Jeon expressed confidence in the potential of the Indian market, stating, “Thus, this is the appropriate time for us to list LG.” He highlighted the company’s efforts since its entry into India in 1997, emphasizing their commitment to providing innovative products and services tailored to Indian consumers.
Through the IPO, Jeon reiterated LG’s commitment to local manufacturing and market growth, asserting, “Through this IPO, we reaffirm our commitment to making for India, making in India, growing with India.” The company initially secured regulatory approval for the IPO in March but postponed the offering in April due to uncertain market conditions.
Regarding the pricing strategy, management noted that the shares were priced at a significant discount compared to peers in the Indian market. “If you just think about pricing overall relative to where the business is and relative to where the peers trade, you will see that there is a very significant discount embedded,” they explained.
Investment bankers indicated strong institutional demand, expecting a positive response to the anchor book. “All categories of investors, which include local institutional investors and foreign institutional investors, are supporting the offering in a very significant way,” they added.
The IPO is scheduled to open from October 7 to October 9, with the anchor book available for subscription on October 6. Investors can place bids for a minimum of 13 shares.
