Preparing for a potential $1.5 billion IPO for its Indian business, LG Electronics is consulting banks like Bank of America and JPMorgan, aiming for a $13 billion valuation.
South Korea’s LG Electronics is preparing for a potential initial public offering (IPO) of its Indian business, which could raise up to $1.5 billion, and tapping banks, according to a Bloomberg report.
As per the report, the company has engaged Bank of America, Citigroup, JPMorgan Chase, and Morgan Stanley as the lead arrangers for this IPO, which might occur as soon as next year. The anticipated share sale could cost LG Electronics India Pvt Ltd approximately $13 billion.
However, the IPO details, including its size and timing, are still under discussion and subject to change. LG may file a prospectus with India’s stock market regulator, SEBI, as early as next month and could involve additional banks, including local ones, later on. Representatives from neither company have commented on this matter.
India is LG Electronics’ second-largest market after the US, and the company aims to maintain its growth there. LG Electronics India, a wholly-owned subsidiary of the South Korean parent company, operates extensively in consumer electronics, home appliances, HVAC, and IT hardware, with manufacturing units in Ranjangaon, Pune, and Greater Noida.
India has become a significant investment market, attracting global investors looking to capitalise on its growth potential. Besides LG, Hyundai Motor is also planning a major share offering for its Indian unit this year.
LG’s potential IPO is part of the company’s broader strategy to achieve $75 billion in electronics revenue by 2030 and revitalise its consumer electronics sector, as noted by CEO William Cho in a recent Bloomberg Television interview.
