Koo Kwang-mo, Chairman of LG, inspects the air conditioner production process at LG Electronics’ Noida plant in New Delhi, India.
SEOUL, Sept. 30 (Korea Bizwire) — LG Electronics is set to complete the stock market listing of its Indian subsidiary as early as October, a move that could raise nearly 1.8 trillion won ($1.3 billion) and significantly bolster the company’s balance sheet.
The South Korean manufacturer said Tuesday its board approved the sale of a 15 percent stake in LG Electronics India through an initial public offering. The company plans to file a final prospectus with India’s securities regulator, with pricing and the timetable to be disclosed once approval is secured.
The IPO will take the form of a secondary share sale, meaning no new stock will be issued and all proceeds will flow directly to LG headquarters. Analysts say this structure allows LG to avoid shareholder dilution and rapidly secure cash without adding financial risk. After the offering, LG will retain an 85 percent stake in the Indian unit.
Local media estimate the offering could total about 115 billion rupees ($1.3 billion), implying a valuation of more than 12 trillion won for LG’s Indian business—well above local peers such as Whirlpool India and Tata Group’s Voltas.
The listing, delayed earlier this year due to market volatility, comes as global corporations from Nestlé to Suzuki increasingly tap India’s capital markets to accelerate local expansion. Analysts at IBK Investment & Securities said the deal will sharply improve LG’s cash flow in the fourth quarter, while Moody’s has noted that the IPO could further strengthen the company’s financial profile.
LG’s Indian unit has emerged as a critical growth driver in the fast-expanding consumer market. With the IPO, industry observers say, LG is securing fresh resources to accelerate future investments while reinforcing its financial resilience.
Kevin Lee (kevinlee@koreabizwire.com)
