LG Electronics aims to make India its global manufacturing hub with local unit’s listing

MUMBAI/BENGALURU :LG Electronics is looking to make India its global manufacturing hub, an executive of its Indian unit said on Wednesday, as the appliance maker revives its long-delayed listing in the country and targets a valuation of $8.73 billion.

LG Electronics India [LGEL.NS], which has invested $600 million in its upcoming factory in Andhra Pradesh state, will open its 116 billion rupees ($1.3 billion) initial public offering on October 7 for retail investors.

Large anchor investors can place their bids a day earlier, it said.

The unit has set a price band of 1,080 to 1,140 rupees per share for its IPO, which is an offer-for-sale where the parent company is 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 – the company’s third in the country – would play a key role in opening newer markets, such as Europe, in addition to the 47 countries LG already ships goods to, Chitkara said.

The company, which is India’s second-largest appliance maker, currently exports goods worth $160 million, or 6 per cent of its overall revenue.

LG competes with Whirlpool and Samsung in the domestic market, which was worth $38.2 billion as of 2024. It sells products such as refrigerators, washing machines and televisions.

LG Electronics aims to expand its premium offerings and scale into smaller cities to boost growth, Chitkara said.

Having initially filed for an IPO last December, LG Electronics India had planned for a listing by May but delayed the share sale citing market volatility.

It now joins South Korean firm Hyundai Motor Co and U.S.-based office space provider WeWork in listing its Indian units in a market that “offers high valuations because of the abundant domestic money supply,” according to Emkay Global Financial Services’ Yatin Singh.

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 $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 $8 billion in proceeds.

Companies in India have raised about 909.8 billion rupees through IPOs, as of September 30, up 18 per cent from the same period a year ago, according to data compiled by LSEG.