LG Group headquarters in Yeouido, western Seoul (Newsis)
LG Group headquarters in Yeouido, western Seoul (Newsis)

LG Electronics is slated to list its Indian subsidiary on the local bourse in mid-October, marking a major milestone in its 28-year presence in the world’s most populous consumer market.

The Korean home appliance maker said Wednesday that it had secured final approval from the Securities and Exchange Board of India for the initial public offering of LG Electronics India.

The IPO is scheduled to take place on Oct. 14, with the share price set between 1,080 and 1,140 rupees ($12.16–$12.83).

Through the offering, LG plans to sell a 15 percent stake -- equivalent to 101.8 million shares -- via an offer for sale mechanism.

The listing does not involve the issuance of new shares, meaning all proceeds will be repatriated to the parent company.

Should the share price be at the top end of the range, LG Electronics India would debut with an estimated market capitalization of 773.8 billion rupees, potentially surpassing major domestic rivals such as Whirlpool India and Voltas, which currently have market capitalizations of around 156.4 billion rupees and 443.2 billion rupees, respectively.

As the company increasingly shifts its focus toward business-to-business ventures and next-generation technologies, expectations are rising that the funds could fuel strategic equity investments or acquisitions in emerging sectors. Enhancing shareholder returns is also reportedly under consideration.

India’s massive and still-developing consumer base -- now exceeding 1.4 billion people -- presents strong long-term prospects for home appliance makers.

Despite the country’s robust economic growth, household penetration of key appliances remains low: only about 40 percent of households own refrigerators, 20 percent own washing machines and just 10 percent have air conditioners.

Since entering the Indian market in 1997, LG has focused heavily on localization to cement its brand.

The company currently operates two manufacturing plants in Noida and Pune, alongside 51 regional offices and over 780 exclusive brand shops.

A third plant is currently under construction in Sri City in southern India, aimed at boosting production capacity to meet rising demand.


yeeun@heraldcorp.com