LG Electronics India Plans $8.73B IPO to Expand Manufacturing

LG Electronics India prepares its first initial public offering (IPO) with its valuation at the target price of 8.73 billion. This follows as the appliance powerhouse gathers speed to make India a worldwide manufacturing centre, with immense investments and increasing consumer demand.

The company has invested 600 million dollars in its upcoming factory in Andhra Pradesh, which is expected to be a cornerstone for expanding exports beyond the 47 countries it already serves.

Sanjay Chitkara, Chief Sales Officer, LG Electronics India, said, “LG favours India as a manufacturing hub for its competitive labor costs and strong domestic demand.” He further noted that the new facility would be crucial in accessing newer markets like Europe.

The IPO, pegged as the country’s third-largest share sale this year, will raise up to ₹11,600 crore ($1.3 billion) through an offer-for-sale, with the parent company offloading a 15% stake. The price band has been fixed at ₹1,080–1,140 per share.

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LG currently generates $ 160 million from exports, approximately 6% of its overall revenue, and competes with Samsung and Whirlpool in India’s $38.2 billion home appliances market. The new manufacturing unit is expected to significantly scale its export contribution while strengthening domestic supply.

Bidding for the IPO opens on October 7 for retail investors, with anchor bids starting a day earlier. This comes amid a buoyant IPO season, with Indian companies already raising ₹909.8 billion by September-end, up 18% year-on-year, according to LSEG data.

The offering aligns with India’s pro-consumption policies, including reduced GST on electronics, and positions LG alongside global players like Hyundai Motor and WeWork, which are also eyeing strong valuations in India’s capital markets.