LG Electronics To Launch Rs 15,000 Crore IPO In India This October

2025-09-08 02:12:08

(MENAFN- KNN India) New Delhi, Sep 8 (KNN) South Korean consumer electronics major LG Electronics is gearing up to launch the initial public offering (IPO) of its Indian subsidiary in October 2025.

The offering is expected to raise around Rs 15,000 crore, making it the largest IPO of the year in India and one of the biggest in the country's market history.

The IPO will be carried out through an Offer for Sale (OFS), under which the parent company, LG Electronics Inc., will offload 10.18 crore equity shares.

This represents a 15 per cent stake in its Indian arm. Since the IPO involves only existing shares, all proceeds from the sale will go directly to the South Korean parent company rather than being reinvested into LG's Indian operations.

Initially planned for April–May 2025, the IPO was postponed due to volatile market conditions. With investor confidence improving and equity markets stabilising, the company has now finalised October as the launch window. The Securities and Exchange Board of India (SEBI) has already granted its approval for the issue.

A consortium of leading financial institutions has been appointed to manage the offering. The list includes Morgan Stanley India, JP Morgan India, Axis Capital, Citigroup Global Markets India, and Bank of America Securities India. Their involvement is expected to add strength and credibility to the offering.

If successful, LG's IPO will overtake HDB Financial Services' Rs 12,500 crore issue to become the largest IPO of 2025. However, some analysts and investors remain cautious about the OFS structure, as it means the Indian subsidiary will not directly benefit from the raised capital.

This sentiment echoes concerns voiced earlier during Hyundai India's listing, which also followed the OFS route.

For LG, the move comes at a time when it is recalibrating strategies globally and addressing revenue challenges faced in the first half of 2025.

The company is banking on its strong brand recognition, wide consumer base, and resilient demand in India to ensure the success of its landmark IPO.

(KNN Bureau)

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