LG Electronics reignites talks for listing Indian arm with a lower IPO size

Firm will likely look at a size of ₹9000-10,000 crore, sources said

South Korean consumer electronics giant LG Electronics has initiated talks with its investment bankers to reignite its plans for the initial public offer of its India unit, but with a substantially scaled down offer, sources with direct knowledge of developments said.

In April, the company paused the listing of LG Electronics India, citing market volatility and the uncertain conditions then and saying it would take a decision on the listing based on market conditions and other factors.

The parent was looking to raise ₹15,000 crore through an offer for sale of 10.2 crore shares in the local arm.

“This will be significantly scaled down now, because the real concern is pricing and valuations,” said a source, adding the company will likely look at a size of ₹9000-10,000 crore.

“They may not be getting the valuations that they were looking for and they will have to settle for something lesser,” the source added.

There was no response from LG Electronics in Korea and in India to an email sent seeking clarification on the developments.

LG filed its draft prospectus for an IPO in December last and received regulatory approval for it in March.

Net profit

The India unit, which sells washing machines, refrigerators, and air conditioners, reported a net profit of ₹1,511 crore in FY24 on revenue of ₹21,352 crore.

In May, LG Electronics India announced setting up its third manufacturing plant in India in Andhra Pradesh, with operations expected to start by end of 2026. It has two manufacturing units in Greater Noida and Pune. The plants currently manufacture LED TVs, air conditioners, washing machines, refrigerators, microwave ovens and monitors.

Valuations and pricing have become tricky in the current volatile market conditions. The first few months of 2025 saw significantly fewer IPOs, compared to last year with volumes dropping by about a third. But still over $4.5 billion worth of money was raised in the primary markets in the first half.

The second half is expected to see IPOs worth over $30 billion hitting the market. A few recent IPOs such as National Securities Depository Ltd, have been fully subscribed within just a few hours of launch proving that there is robust investor appetite for good quality paper.

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Published on July 31, 2025