LG Electronics India IPO 2025–2026: Everything Investors Should Know

Introduction

In a significant move for India's capital markets and the consumer electronics sector, LG Electronics is preparing to launch the initial public offering (IPO) of its Indian subsidiary. The South Korean electronics giant aims to raise approximately $1.7 billion through a public listing scheduled between September and December 2025. This article provides a detailed overview of LG’s IPO plan, expansion strategies, and what investors should watch for.

IPO Filing Timeline: When is LG India Going Public?

LG Electronics India is likely to file a draft red herring prospectus (DRHP) by September 2025 with a goal to list in the fourth quarter of FY 2025–26, i.e., between December 2025 and March 2026.

Earlier in April 2025, the company deferred its IPO due to market volatility and cautious investor sentiment. However, the latest reports indicate LG has revived its plans and is preparing for a fresh submission.

IPO Size and Structure

How Much Will LG Raise?

According to insider reports, the IPO will involve an Offer-for-Sale (OFS) route by LG Electronics (South Korea), the parent company. The size of the issue is pegged at around $1.7 billion (approx. ₹14,000 crore), making it one of the largest IPOs in India’s consumer electronics space.

Equity Dilution

The South Korean parent is expected to offload approximately 15% of its stake in the Indian arm. There is no new share issuance, meaning no fresh capital will be raised by LG India itself—this IPO will solely enable LG Electronics Inc. to monetize its holdings.

Strategic Expansion Backing the IPO

One of the key developments supporting LG’s IPO strategy is its investment in domestic manufacturing capacity.

New Manufacturing Plant in Andhra Pradesh

LG has recently broken ground on its third manufacturing facility in India, located in Sri City, Andhra Pradesh.

• Investment: $600 million over four years
• Timeline:

• Air Conditioners: Production to begin by late 2026
• Refrigerators & Washing Machines: To be added in phases by 2029

• Employment Impact:

• Direct jobs: 1,500
• Indirect jobs: Up to 10,000

This expansion underscores LG’s commitment to the Indian market and aligns with the Make in India initiative.

Market Conditions and Why IPO Was Delayed

Why LG Postponed the IPO in April 2025

LG initially planned to go public in early 2025. However, the IPO was postponed due to:

• Unfavorable market conditions
• Weak investor appetite in the large-cap consumer goods segment
• Global economic uncertainties

With the Nifty index rebounding over 12% since its March 2025 lows, LG appears more confident about favorable valuations and market demand in the upcoming window.

Government Incentives and Policy Support

LG’s IPO is strategically aligned with India's policy ecosystem encouraging manufacturing and employment.

Key Government Support:

Production-Linked Incentive (PLI) Scheme: Part of India’s $2.68 billion electronics manufacturing push

Employment-Based Incentives: LG’s large-scale hiring plans may qualify for central and state-level job creation benefits

These policy tailwinds not only enhance LG India’s growth prospects but also improve investor perception around long-term profitability.

What Does This Mean for Retail and Institutional Investors?

Key Investment Highlights

Factor Details
IPO Size Approx : $1.7 billion via OFS
Equity Dilution : ~15% of LG Electronics Inc.’s stake
Expansion Plan : New plant in AP, manufacturing boost
Employment Impact : Over 11,500 direct and indirect jobs
Government Policy Support : Strong alignment with PLI and employment schemes
Market Sentiment : Improved Nifty performance; IPO window looks stronger

Risks and Watch Points

• Valuation Sensitivity: The IPO was earlier delayed due to high valuation expectations from the parent.
• Market Volatility: Any global or domestic shocks could impact the final IPO schedule again.
• No Fresh Issue: Since this is a pure OFS, the proceeds will not directly benefit LG India’s operations.

Final Thoughts

LG Electronics India’s IPO is shaping up to be a high-profile listing in India’s IPO calendar. Backed by a robust manufacturing expansion, strong brand equity, and government policy support, the company is positioned for long-term success in India’s fast-growing consumer electronics market.

However, investors should remain cautious of valuation levels and potential delays due to market volatility. If the IPO goes live as planned, it will provide a rare opportunity to invest in a high-growth, multinational-backed brand in the Indian public market.

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