South Korea's LG Electronics to launch Rs 15,000 crore IPO in India this October: Report

South Korea’s LG Electronics is preparing to launch an initial public offering (IPO) of its Indian subsidiary in October, aiming to raise Rs 15,000 crore in what would be the country’s largest listing this year, according to an ET report.

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The share sale is scheduled to open in the second week of October, with the company planning to begin investor roadshows in India in early October. Shares are expected to debut on domestic exchanges in the third week, the report said.

The IPO, cleared by the Securities and Exchange Board of India (SEBI) in March after an application filed in December 2024, will involve the sale of about 10.2 crore shares, representing 15% of LG’s Indian arm, through an offer for sale by the South Korean parent.

Post-listing, LG will retain an 85% stake. The transaction is being managed by Morgan Stanley India, JP Morgan India, Axis Capital, BofA Securities India, and Citigroup Global Markets India, the report noted.

At Rs 15,000 crore, the LG Electronics India issue will surpass HDB Financial Services’ Rs 12,500-crore share sale in June, making it the largest IPO of 2025 so far. It also marks the second major Korean listing in India, following Hyundai Motor India’s Rs 27,870-crore debut in October last year, the country’s biggest public offering to date.

LG had initially planned to launch the offering in April or May, but postponed the process amid volatile markets and global headwinds, including trade disputes and shifting US tariffs, which weighed on valuations. Initial expectations of a $15 billion valuation were revised to about $10.5-11.5 billion.

The timing of the listing coincides with an active primary market. Nearly 50 IPOs have raised more than Rs 70,000 crore this year, with another Rs 70,000 crore of offerings in the pipeline, including Tata Capital’s Rs 17,000-plus crore issue, as well as upcoming debuts from the Indian startup ecosystem Groww, Meesho, PhonePe, Lenskart, Shadowfax, Boat, PhysicsWallah, and WeWork India.

Established in 1997, LG Electronics India has grown into a dominant force in the home appliances and consumer electronics market, leading by volume and maintaining the top spot in value share across offline retail for 13 consecutive years, according to Redseer.

In fiscal 2024, the company reported revenue of Rs 21,352 crore, up 7.5% year-on-year, and a profit of Rs 1,511 crore, a 12.3% increase. Operating profit stood at Rs 2,225 crore, with a margin of 10.4%.