The much-anticipated LG Electronics India IPO is expected soon. As per recent buzz across media circles, the issue is likely to be launched in October. However, there is no official confirmation on that yet. Another key aspect is the issue size of the LG Electronics IPO.
As per the DRHP, the India subsidiary of South Korea’s LG Corporation has received SEBI approval for its proposed Rs 15,000 crore IPO. The issue will involve the parent selling a 15% stake in its Indian unit through an OFS. Though there are some reports that the company may look at reducing the issue size, there is no formal announcement yet.
All eyes are on the formal announcement from the company on the issue size and the IPO price band. Meanwhile, here is a look at the 5 key things about the issue that investors must watch out for.
But before investors rush to apply, here are five key things that make this upcoming IPO worth a closer look.
LG Electronics IPO: Size and scale of the offering
LG Electronics India is bringing a Rs 15,000 crore IPO, entirely through an Offer for Sale (OFS). This means the South Korean parent, LG Electronics Inc., will offload about 10.18 crore shares, or 15% of its stake, in the local arm. No new money will flow into the company itself, as all proceeds will go directly to the parent.
Interestingly, this is the second-largest IPO by a Korean company in India, following Hyundai’s listing in 2024.
LG Electronics IPO: The objective behind the IPO
Unlike many recent issues where companies raised funds for expansion, LG’s offering has a simple goal, and that is listing its Indian arm on the stock exchanges. This will give the company better visibility in the domestic market and unlock value for its South Korean parent.
LG Electronics IPO: Services that power LG Electronic India
Apart from selling a host of consumer electronic goods like TVs, washing machines and refrigerators, LG India runs a massive after-sales service network. In FY24 alone, it handled over six million service requests, ranging from installations to repairs and maintenance.
The company also offers Annual Maintenance Contracts (AMCs), particularly for HVAC systems used by businesses. With 949 authorised service centers across 594 cities and more than 12,500 engineers, LG follows what it calls the “2-1-1 process” which is to allocate requests in 2 hours, contact customers within 1 hour, and schedule visits soon after.
LG Electronics IPO: The shareholding picture
As of now, LG Electronics holds 100% in its Indian arm. The IPO will change that picture, reducing its holding by 15% once the shares hit the market.
Ahead of the IPO, LG also made a few capital changes. It raised its authorised share capital to Rs 1,500 crore in October 2024 and later issued bonus shares in a 5:1 ratio, increasing the equity base.
LG Electronics IPO: About timing and valuation challenges
As the buzz around the LG Electronics India IPO is still around the corner, it was originally expected in April-May 2025, but due to market turbulence, the company delayed the plan. Global trade tensions, shifting US tariffs, and volatile equity markets were some of the factors that forced LG Electronics to wait for calmer conditions.
The company’s India arm was once eyeing a $15-billion valuation, but current estimates suggest a more modest $10.5-11.5 billion range.