LG Electronics India unit targets $8.7 billion valuation in IPO

LG Electronics India Pvt is targeting a valuation of up to 774 billion rupees ($8.71 billion) in its long-delayed initial public offering (IPO), taking advantage of a crowded IPO market, CNBC reported, noting that it is one of the largest offerings in India since 2025.

The appliance maker has set a price range of 1,080-1,140 rupees per share, according to a public filing with the capital markets regulator last week. The three-day share sale opens tomorrow. Large strategic investors can submit bids today.

The IPO will raise up to 116 billion rupees ($1.3 billion), if the upper limit of the set price range is taken into account. South Korean parent LG Electronics Inc. is divesting a 15% stake in the company.

LG Electronics India is not issuing new shares in the offering, so existing shares of the parent will be sold.

• IPO delayed due to market volatility

After initially filing for an IPO in December last year, LG Electronics had targeted a listing by May but postponed the share sale, citing market volatility.

October is a busy month for IPOs in India, with non-bank lender Tata Capital's $1.75 billion offering - the country's largest this year - and co-working space provider WeWork's offering scheduled to take place around the same time.

LG's IPO also comes after India's tax authority cut sales tax on a wide range of goods, including electronics, from 28% to 18% in a bid to boost demand for the festive season.

LG Electronics, India's second-largest appliance maker, sells products such as refrigerators, washing machines and televisions. The company competes with Whirlpool (US) and Samsung (South Korea) in the domestic market, which is expected to grow by 12% annually through 2029, according to consultancy RedSeer.

LG India's IPO is the latest in a long line of offerings by companies to tap India's capital markets this year. Indian companies raised about 909.8 billion rupees through IPOs as of September 30, compared with 770.6 billion rupees in the same period last year, according to LSEG data.