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Item 1 of 2 Dongmyung Seo, Chief Financial Officer of LG Electronics India Limited and Hong Ju Jeon, Managing Director of LG Electronics India Limited, pose for pictures during a press conference announcing the company's Initial Public Offering (IPO), in Mumbai, India, October 1, 2025. REUTERS/Francis Mascarenhas
[1/2]Dongmyung Seo, Chief Financial Officer of LG Electronics India Limited and Hong Ju Jeon, Managing Director of LG Electronics India Limited, pose for pictures during a press conference announcing the company's Initial Public Offering (IPO), in Mumbai, India, October 1, 2025. REUTERS/Francis... Purchase Licensing Rights, opens new tab Read more
- LG Electronics seeks $8.7 billion valuation for Indian unit
- India to be global export hub for LG, exec says
- Price band set at 1,080-1,140 rupees/share
- IPO to run from Oct. 7 to Oct. 9
- Korean parent selling 15% stake in IPO
MUMBAI/BENGALURU, Oct 1 (Reuters) - LG Electronics
(066570.KS), opens new tabis looking to position India as a global manufacturing hub, an executive of its Indian unit said on Wednesday, as the appliance maker revives its long-delayed India listing, targeting a valuation of $8.73 billion.
LG Electronics India LGEL.NS, which has invested $600 million in its upcoming factory in Andhra Pradesh state, aims to raise up to 116 billion rupees ($1.3 billion) in what will be the country's third-largest share sale this year.
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It has set a price band of 1,080-1,140 rupees per share in the initial public offering, an offer-for-sale, with the parent company offloading a 15% stake.
LG favours India as a manufacturing hub for its competitive labour costs and strong domestic demand, Chief Sales Officer Sanjay Chitkara said.
The upcoming factory - its third in the country so far - would be key to opening up newer markets like Europe, in addition to the 47 countries it already ships goods to, Chitkara said.
Currently, exports are worth $160 million, or 6% of the overall revenue for the firm, which is India's second-largest appliance maker.
The company competes with Whirlpool
(WHR.N), opens new tab,
(WHIR.NS), opens new taband Samsung
(005930.KS), opens new tabin a domestic market that was worth $38.2 billion as of 2024, selling products such as refrigerators, washing machines and televisions.
Having initially filed for an IPO last December, LG Electronics India sought a listing by May, but delayed the share sale citing market volatility.
Bidding opens on October 7 for retail investors, while large anchor investors can place bids a day earlier.
LG now joins fellow South Korean company Hyundai Motor Co
(005380.KS), opens new taband U.S.-based office space provider WeWork
(WWOK.PK), opens new tabin listing their Indian units in a market that, according to Emkay Global Financial Services' Yatin Singh, "offers high valuations because of the abundant domestic money supply."
The IPO also comes at a time when India has lowered consumption taxes on several goods, including electronics, to 18% from 28% to spur demand during the lucrative festive season.
Together with non-bank lender Tata Capital's $1.75 billion issue - the country's largest this year - these IPOs will kick off a busy third-quarter for India's primary markets, potentially fetching $8 billion in proceeds.
As of September 30, companies in India have raised about 909.8 billion rupees through IPOs, up 18% from the same period last year, according to LSEG data.
Reporting by Dhwani Pandya in Mumbai, Nandan Mandayam in Bengaluru, Chris Thomas in Mexico City; Additional reporting by Vivek Kumar M; Editing by Janane Venkatraman, Shailesh Kuber and Alan Barona
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Dhwani Pandya is the companies correspondent for Reuters in Mumbai, where she tracks top business groups including Reliance and Adani and writes on real estate, consumer and retail themes. She joined Reuters in 2023, and has written stories on billionaire Gautam Adani's push to redevelop Asia’s largest slum and Reliance's quick commerce ambitions. She previously worked at Bloomberg for more than eight years, reporting on energy markets, Indian conglomerates and themes such as infrastructure and real estate.
