Shares jump 50% after $1.3b debut, marking India’s most sought-after listing since 2008
LG Electronics’ Indian unit went debuted on the Indian stock exchange Tuesday, with shares soaring more than 50 percent on its first day of trading.
Shares opened at 1,710 rupees ($19.26), more than 50 percent beyond its IPO initial public offering of 1,140 rupees. The Indian unit's value was estimated to be about $13.07 billion at debut, far exceeding its South Korean parent's roughly $9 billion market cap.
The IPO sparked massive investor demand during the three-day subscription process last week, with bids 54 times over the number of offered shares, marking India’s most sought-after IPO since 2008.
For the sale, LG Electronics divested about 101.8 million shares, representing a 15 percent stake in its Indian subsidiary. Priced at the upper end of 1,140 rupees per share, the IPO raised about 1.8 trillion won ($1.3 billion).
As the IPO was an offer-for-sale, with no new shares issued, all proceeds will go to parent company LG Electronics, which plans to use the funds raised for investment and to strengthen shareholder value.
The stock market debut marks LG Electronics’ first overseas listing and makes it the second South Korean company to enter the Indian stock market, following Hyundai Motor India's debut last October.
LG Electronics CEO Cho Joo-wan and key executives, including Chief Financial Officer Kim Chang-tae, Jeon Hong-ju, managing director of LG Electronics India, Song Dae-hyun, chair of the board at LG Electronics India, and the stock exchange's CEO Ashish Chauhan, along with investors and analysts, attended a listing ceremony, celebrating the launch of the company's initial public offering. The event took place at 10 a.m. at the National Stock Exchange in Mumbai, where participants rang the opening bell.
The listing, which had been delayed due to market volatility, marks what CEO Cho emphasized as a major step toward making LG a household name in India and a long-term partner in the nation’s economic growth.
“Through this listing India will become a pivotal hub in LG Electronics’ Global South strategy,” Cho said at the ceremony. “We aim to accelerate growth for both LG Electronics and our Indian unit.”
Cho outlined a threefold vision for LG’s next phase in India: “Make for India,” “Make in India” and “Make India Global.”
Under the “Make for India” initiative, LG showcased a new lineup of appliances designed specifically for Indian consumers, marking the first time the company has introduced India-only models in the mass-market segment. The new products will be rolled out in November, which includes refrigerators, washing machines, air conditioners and microwave ovens, all produced at the company’s manufacturing plants in Noida and Pune.
The “Make in India” pillar focus on LG’s manufacturing ecosystem in the country.
Since establishing its first headquarters in 1997 in Noida, northern India, the company has built out a complete local supply chain covering production, sales, service and research and development.
In addition to its existing plants in Noida and Pune, western India, LG is investing $600 million to build a third home appliance plant in Sri City, a special economic zone in the southern state of Andhra Pradesh.
Once the new site becomes fully operational in 2029, LG’s combined annual capacity in the country will rise to 2 million TVs, 3.6 million refrigerators, 3.75 million washing machines and 4.7 million air conditioners.
The company also operates the R&D center LG Soft India, which focuses on research in artificial intelligence, system-on-chip and platform development.
Through the “Make India Global” initiative, LG aims to turn the country into a key base for its operations across emerging markets. The company said it seeks to serve as a long-term partner in India’s ascent on the global stage.
sahn@heraldcorp.com
