^{Photo: The Economic Times}

A Major Listing in India’s IPO Rush
LG Electronics’ Indian subsidiary is gearing up for one of the country’s largest public offerings of the year, seeking a valuation of up to 774 billion rupees ($8.71 billion). The long-anticipated IPO, delayed earlier due to market volatility, will now open for bidding on October 7, with anchor investors getting the first opportunity on October 6.

According to its public filing, LG has set a price band of 1,080 to 1,140 rupees per share. At the top end of the range, the offering is expected to raise as much as 116 billion rupees ($1.3 billion) for the Korean parent company, LG Electronics Inc., which is selling a 15% stake. Importantly, the Indian unit itself is not issuing new shares, making this a pure stake sale for the parent.

IPO Market in India Heats Up
October has emerged as one of the busiest months for India’s capital markets. Tata Capital is launching the country’s largest IPO this year, targeting $1.75 billion, while WeWork India is also preparing to test investor appetite.

India has seen a surge in IPO activity in 2024. Companies raised nearly 909.8 billion rupees through IPOs as of September 30, compared to 770.6 billion rupees during the same period last year, according to data from LSEG. The LG Electronics India IPO adds significant momentum to this trend.

A Festive Tailwind and Market Opportunity
The timing of the IPO is strategic. The Indian government recently lowered goods and services tax (GST) rates on electronics and other consumer goods from 28% to 18%, aimed at boosting consumption during the festive season, which historically drives strong sales of home appliances.

As India’s second-largest appliance maker, LG Electronics India has a strong foothold in the domestic market with refrigerators, washing machines, air conditioners, and televisions. The company directly competes with global players such as Samsung and Whirlpool. Market research firm RedSeer estimates that India’s home appliance market will grow at a compound annual rate of 12% through 2029, presenting immense opportunity for expansion.

Strategic Importance for LG
For LG’s parent company in South Korea, the IPO is not just a capital-raising event but a strategic move to unlock value from its high-growth Indian business. By monetizing a portion of its stake, LG Electronics Inc. gains liquidity while still retaining control of its Indian arm.

David Kim, an independent analyst tracking Asian consumer markets, noted that the IPO could be a turning point for the brand. “India has become one of LG’s fastest-growing markets globally, and this listing both validates the potential of the business and positions LG to capitalize on rising consumer demand for premium electronics,” he said.

What Investors Should Watch
While investor enthusiasm is high, challenges remain. Rising competition in India’s appliance sector, currency fluctuations, and continued global supply chain risks could weigh on margins. However, LG’s diversified portfolio, strong brand equity, and leadership in key categories make the IPO attractive to institutional and retail investors alike.

With India’s IPO market setting new records and consumer demand on the rise, LG Electronics India’s public debut could emerge as one of the defining listings of 2024, setting the stage for more global corporations to unlock value in the world’s fastest-growing major economy.