[MUMBAI / BENGALURU] LG Electronics is looking to position India as a global manufacturing hub, an executive of its Indian unit said on Wednesday (Oct 1), as the appliance maker revives its long-delayed India listing, targeting a valuation of US$8.73 billion.
LG Electronics India, which has invested US$600 million in its upcoming factory in Andhra Pradesh state, aims to raise up to 116 billion rupees (S$1.7 billion) in what will be the country’s third-largest share sale this year.
It has set a price band of 1,080-to-1,140 rupees per share in the initial public offering, an offer-for-sale, with the parent company offloading a 15 per cent stake.
LG favours India as a manufacturing hub for its competitive labour costs and strong domestic demand, chief sales officer Sanjay Chitkara said.
The upcoming factory – its third in the country so far – would be key to opening up newer markets like Europe, in addition to the 47 countries it already ships goods to, Chitkara said.
Currently, exports are worth US$160 million, or 6 per cent of the overall revenue for the firm, which is India’s second-largest appliance maker.
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The company competes with Whirlpool and Samsung in a domestic market that was worth US$38.2 billion as of 2024, selling products such as refrigerators, washing machines and televisions.
Having initially filed for an IPO last December, LG Electronics India sought a listing by May, but delayed the share sale citing market volatility.
Bidding opens on Oct 7 for retail investors, while large anchor investors can place bids a day earlier.
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LG now joins fellow South Korean company Hyundai Motor and US-based office space provider WeWork in listing their Indian units in a market that, according to Emkay Global Financial Services’ Yatin Singh, “offers high valuations because of the abundant domestic money supply.”
The IPO also comes at a time when India has lowered consumption taxes on several goods, including electronics, to 18 per cent from 28 per cent to spur demand during the lucrative festive season.
Together with non-bank lender Tata Capital’s US$1.75 billion issue – the country’s largest this year – these IPOs will kick off a busy third-quarter for India’s primary markets, potentially fetching US$8 billion in proceeds.
As of Sep 30, companies in India have raised about 909.8 billion rupees through IPOs, up 18 per cent from the same period last year, according to LSEG data. REUTERS
