LG Launches Roadshows for $1.5 Billion IPO in India

LG Electronics has officially commenced roadshows for the initial public offering (IPO) of its Indian subsidiary, LG Electronics India Ltd. This move is part of the South Korean company's larger strategy to take its Indian unit public and raise funds through this listing. As per Bloomberg's sources, the IPO could raise between $1 billion to $1.5 billion and potentially value LG India at around $15 billion.

IPO Process and Potential Valuation

According to reports, LG Electronics started meeting with potential investors in early 2025 as it progresses with its plans to list LG India on the stock market. The company is reportedly working towards a Mumbai-based IPO, expected to take place within this year. However, deliberations surrounding the IPO are still in progress, and details about the offering may change as the process moves forward.

Bloomberg has indicated that the IPO will likely be valued at between $1 billion and $1.5 billion, with a potential overall valuation for LG India of as much as $15 billion. These figures have been cited by people familiar with the matter, though the official details remain confidential at this stage.

Plans for Share Offering

As per a prospectus filed by LG Electronics in December 2024, the company plans to offer as many as 101.82 million shares in the public offering. The IPO is set to be managed by top investment banks, including Axis Capital Ltd., Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co., and Morgan Stanley. The involvement of these prestigious financial institutions signals the importance and magnitude of this offering.

Other Notable IPOs and Market Conditions

LG Electronics' IPO of its Indian unit follows in the footsteps of Hyundai Motor Co., another South Korean giant, which listed its Indian subsidiary in 2024. Hyundai's IPO raised an impressive $3.3 billion, marking one of the largest IPOs in India to date. This move helped elevate India as one of the world’s leading markets for initial public offerings.

However, the stock market conditions in India have recently shown signs of volatility. Despite consistent gains over the past nine years, the Sensex Index has seen a decline in 2025, signaling waning enthusiasm in the local market. In comparison, other major markets like China and Hong Kong have experienced significant growth, with double-digit gains. These market shifts could potentially influence the outcome of LG's IPO.

Investor Sentiment and Stock Market Trends

While Hyundai's Indian IPO set a record, its stock has underperformed since its debut. Trading about 6% lower than its October 2024 listing price, Hyundai India’s stock performance highlights the current caution in the Indian stock market. Investor sentiment appears to be shifting, with concerns over the broader market conditions potentially impacting the performance of future IPOs, including LG India’s offering.

Declining Market Enthusiasm

Despite the strong IPO market in India over the past several years, the Sensex’s retreat in early 2025 could dampen investor enthusiasm. A decade-long period of growth in the stock market has given way to caution, with investors potentially reassessing risk in light of broader global trends and market movements. The contrast with major stock gauges in other regions, such as China and Hong Kong, underscores the challenges that Indian IPOs may face in the coming months.

Conclusion: Future of LG India's IPO

LG Electronics’ plans to list its Indian unit come at a time when the Indian IPO market is facing new challenges. While the IPO process is moving forward, the current stock market conditions and investor sentiment could influence the final outcome. With a potential valuation of $15 billion, LG India's IPO could significantly impact the Indian stock market, but it will also need to contend with fluctuating investor enthusiasm and global market conditions.