South Korean consumer electronics giant LG Electronics has decided to go ahead with the initial public offer of its Indian subsidiary, and its board has approved the sale of 10.18 crore shares in the Indian unit, according to a regulatory filing.
This will translate into a 15 per cent dilution of its stake in its Indian arm, LG Electronics India Ltd, in which it will hold 85 per cent stake post the IPO.
According to the Red Herring Prospectus, the IPO will be open October 7-9, with the anchor book open for bidding on October 6.
The Indian unit is also holding a press conference on Wednesday to announce the initial public offer and the price band.
Investment banking sources said due to the strong investor interest indications are that the company may look for an IPO size in the range of Rs 11,000-12,000 crore a bit lower than the Rs 15,000 crore originally planned, when it had filed draft papers last year.
It received regulatory approval for the issue that was slated for a May listing, but pulled out of it in April, citing uncertain market conditions. Subsequently when it reinitiated talks for the IPO in July, it was learnt to be looking at a reduced size in the range of ₹9000-10,000 crore or even lower.
“There is good investor appetite, and they may be looking at a larger size,” said an investment banker involved in the process.
However with Tata Capital scaling down its IPO pricing with the aim to make it more palatable, LG is likely to strike a middle path, between its own expectations and what the market wants.
LG Electronics India, which makes a range of household appliances and consumer electronics, stated in its updated RHP that in the June quarter it derived 78.37 per cent of its revenue from Home Appliances and Air solution division. Revenue from sales of refrigerators was 34.59 per cent, washing machines 18.48 per cent, air conditioners 20.4 per cent and televisions 16.71 per cent.
It reported a net profit of ₹513.3 crore in the June quarter, a 24.5 per cent fall on year while revenue slipped 2.3 per cent to ₹6263 crore.
It observed that some of its products had shown a fall in market share in 2024 from year ago. It explained that the decrease in market share from 2021 to 2024 for refrigerators, washing machines and panel televisions was due to product optimisation by not operating in basic entry price segments.
Published on September 30, 2025
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