Winning Bizness Desk

Mumbai.South Korean electronics giant LG Electronics is set to launch the Initial Public Offering (IPO) of its Indian unit. The Securities and Exchange Board of India (SEBI) has approved the company’s draft papers, allowing it to proceed with the public issue.

The IPO will be an Offer for Sale (OFS) with a total issue size of ₹15,000 crore. It involves the sale of 10.18 crore equity shares with a face value of ₹10 each. Notably, LG Electronics will not generate any income from the IPO, as it is purely a share sale. The company had initially filed its Draft Red Herring Prospectus (DRHP) with SEBI on December 19, 2024.

Among India’s Largest IPOs

With a size of ₹15,000 crore, LG India’s IPO is set to be one of the top five biggest IPOs in the history of the Indian stock market. The lead managers for the issue include Morgan Stanley, JP Morgan, Axis Capital, BofA Securities, and Citigroup.

Once listed, LG Electronics India Private Limited is expected to reach a valuation of $13 billion (₹1.10 lakh crore). The IPO will be a significant step for the company as it aims to expand its business and strengthen its market position.

Targeting $75 Billion in Revenue by 2030

LG Electronics is strategically launching this IPO to align with its long-term growth plans. The company has set an ambitious revenue target of $75 billion (₹6.35 lakh crore) by 2030 for its electronics business. This move is part of LG's broader strategy to revive and strengthen its consumer electronics segment. In an earlier interview with Bloomberg Television, LG CEO William Cho emphasized that the IPO is crucial for achieving the company’s financial and operational goals.

India’s Biggest IPOs

LG India’s IPO is expected to be among the largest public issues in India’s history, ranking alongside LIC, Paytm, and Coal India.