Reviving its IPO plan, LG bets on India’s cost edge and rising demand to fuel global expansion.
LG Electronics is preparing to list its Indian arm, aiming to turn the country into its global manufacturing hub, a senior executive confirmed on Wednesday. The long-delayed public offering comes as the South Korean appliance major seeks an $8.73 billion valuation for its Indian subsidiary.
LG Electronics India, which has invested $600 million in a new factory in Andhra Pradesh, will launch its ₹116 billion ($1.3 billion) initial public offering on 7 October for retail investors, with anchor investors allowed to bid a day earlier. The IPO, structured as an offer-for-sale, will see parent LG divest a 15% stake at a price band of ₹1,080–1,140 per share.
The new factory, LG’s third in India, is expected to boost exports beyond the 47 countries it currently serves, including opening access to European markets. At present, the company exports goods worth $160 million, or around 6% of its revenue.
Chief Sales Officer Sanjay Chitkara cited India’s competitive labour costs and robust domestic demand as key reasons for choosing the country as a global hub. India, the world’s second-largest appliance market valued at $38.2 billion in 2024, also benefits from recent tax cuts on electronics.
The move places LG alongside Hyundai Motor and WeWork, which are also listing Indian units, as IPO activity surges. Indian markets have already seen an 18% rise in fundraising this year, totalling nearly ₹910 billion by September-end.
