LG Electronics has approved plans to divest 15 per cent of its Indian subsidiary through an initial public offering (IPO) scheduled to open in the week beginning 6 October 2025. The parent company will sell 101.8 million shares of LG Electronics India through an offer-for-sale structure, with no new equity issuance. The issue is expected to raise about Rs 11,500 crore (USD 1.3 billion).
The transaction values LG Electronics India at approximately USD 9 billion, compared with USD 15 billion indicated in draft documents filed in December 2024. LG Electronics India filed its draft prospectus with the Securities and Exchange Board of India (Sebi) in 2024 and received conditional approval in March 2025.
For FY24, LG Electronics India reported operating revenue of Rs 21,352 crore, an increase of 7.5 per cent year-on-year. Net profit rose 12.3 per cent to Rs 1,511 crore, and total income stood at Rs 21,557 crore. Home appliances and air solutions contributed nearly three-quarters of revenue, while home entertainment accounted for about one-quarter. Refrigerators, washing machines, air conditioners, and televisions each contributed between one-fifth and one-fourth of the mix.
As of June 2024, industry data showed LG’s market shares in India at 28.7 per cent in refrigerators, 33.5 per cent in washing machines, 19.4 per cent in air conditioners, and 25.8 per cent in panel televisions. Its FY24 revenue exceeded that of domestic peers Havells India, Voltas, and Whirlpool of India.
LG Electronics is also investing USD 600 million in a new manufacturing facility at Sri City, Andhra Pradesh. Operations are scheduled to begin in 2026, with phased expansion until 2029 to increase capacity for air conditioners, washing machines, and refrigerators. The facility will supply both domestic and export markets, including South Asia and the Middle East.
The IPO is being managed by Morgan Stanley India, JPMorgan India, Axis Capital, BofA Securities India, and Citigroup Global Markets India, with KFin Technologies as registrar. Following the offering, LG Electronics will retain an 85 per cent stake in its Indian subsidiary. |
