South Korea’s LG Electronics Inc. is preparing for a potential initial public offering (IPO) of its Indian business, which could raise $1.5 billion. According to sources familiar with the matter, the company has selected several central banks, including Bank of America, Citigroup, JPMorgan Chase, and Morgan Stanley, to manage the offering.
The IPO could take place as early as next year and aims to raise between $1 billion and $1.5 billion, giving LG Electronics India Pvt Ltd. a potential valuation of around $13 billion.
While discussions are ongoing, the size and timing of the offering may still change as the company finalizes details. Sources have indicated that LG could file its prospectus with India’s stock market regulator as early as next month.
At a later stage, more banks, including local ones, could be added to the list of arrangers. LG and the banks’ representatives have declined to comment on the matter.
India has emerged as a prime location for global investors looking to capitalize on the country’s growth potential. Several major companies plan to list their Indian units, with Hyundai Motor Co. also eyeing a large IPO for its local operations. This trend reflects the increasing attractiveness of the Indian market for international businesses.
For LG Electronics, the IPO of its Indian unit is part of a broader strategy to expand its electronics revenue and rejuvenate its consumer electronics segment. The company has set an ambitious goal of reaching $75 billion in electronics revenue by 2030.
In an interview with Bloomberg Television, LG’s CEO William Cho indicated that exploring an IPO is one of the steps the company is considering to achieve this target and boost its presence in the global market.
This potential IPO would mark a significant development for LG’s Indian business, positioning the company to take advantage of India’s growing consumer base and solidify its standing in the electronics sector. As plans progress, LG’s move could further highlight India’s increasing importance as a hub for global investment and significant financial deals.