South Korea’s consumer electronics powerhouse, LG India, is gearing up to launch the initial public offering (IPO) of its Indian subsidiary in October 2025. Valued at INR 15,000 crore, the issue is poised to be the largest IPO in India this year and the second-largest by a Korean company in the country, following Hyundai India IPO record INR 27,870 crore debut in October 2024.
The public issue will see the parent company offload 10.2 crore shares, or 15% of its stake, through the offer-for-sale (OFS) route. This means all proceeds will flow to the selling shareholder, with no fresh capital being infused into the Indian arm.
Regulatory Nod and Delayed Plans
LG Electronics filed its Draft Red Herring Prospectus (DRHP) in December 2024, and the issue received clearance from the Securities and Exchange Board of India (SEBI) in March 2025. Initially, LG India had targeted an April–May launch, but global trade disputes, shifting U.S. tariffs, and geopolitical uncertainties created volatility in the markets. This not only delayed the IPO but also forced a downward adjustment in valuations, from a targeted USD 15 billion (~INR 1.32 lakh crore) to an estimated USD 10.5–11.5 billion (~INR 0.92 – 1.01 lakh crore).
Now, with Indian equities riding on renewed bullish sentiment, LG believes October offers the “right window” for the share sale.
Timing and Market Context
Industry sources suggest that the IPO is likely to open in the second week of October, with share listing expected by the third week. Ahead of this, LG India will begin roadshows in early October, courting institutional and retail investors alike.
In the first eight months of 2025, the Indian IPO market has witnessed a flurry of activity with 48 public issues hitting the bourses. Of these, 13 IPOs debuted in the red, while 35 rewarded investors with positive listing gains. On average, the IPOs so far this year have delivered a listing-day return of 13.21% which is disappointing when compared with 2024’s 30.12% avg listing returns. The standout performer has been Highway Infrastructure, which not only set a record with an astonishing subscription level of 300.61 times but also delivered the highest listing-day return of 72.50%. Following closely was Aditya Infotech, which rewarded investors with a robust 60.74% return on debut.
In terms of size, the year’s largest offering has been from HDB Financial, which raised a massive INR 12,500 crore. The second-largest issue came from Hexaware Technologies, with an IPO size of INR 8,750 crore. At the other end of the spectrum, the smallest IPO so far in 2025 has been Globe Civil Projects, with an issue size of just INR 119 crore.
Another INR 70,000 crore worth of offerings are in the pipeline, featuring heavyweights such as Tata Capital (INR 17,200 crore), along with Groww, Meesho, PhonePe, boAt, Lenskart, WeWork India, Shadowfax, and PhysicsWallah.
Key Stakeholders
The IPO is being managed by some of the most prominent names in global finance. The book-running lead managers include:
- Morgan Stanley India
- JP Morgan India
- Axis Capital
- BofA Securities India
- Citigroup Global Markets India
The registrar of the issue has been appointed as Kfin Technologies.
Financial Performance and Market Leadership
LG Electronics India has the largest distribution network among leading home appliances and consumer electronics brands, with 36,401 B2C touchpoints and a robust after-sales service network comprising 949 service centers and 12,590 engineers across India. LG India also has a presence in 54 countries across Asia, Africa, and Europe.
Financially, LG India has demonstrated consistent growth. In FY24, LG Electronics India reported:
- Revenue from operations: INR 21,352 crore (up 7.48% year-on-year)
- Operating profit (EBITDA): INR 2,224.87 crore (margin of 10.42%)
- Net profit: INR 1,511.1 crore (up 12.35% year-on-year)
For the quarter ending 30 June 2024, LG India posted a profit of INR 679.65 crore on revenues of INR 6,408.8 crore. Segment-wise, home appliances and air solutions contributed 79% of revenues, while home entertainment accounted for 21%.
Strategic Significance
The IPO marks more than just a fundraising exercise. Analysts point out that this listing will solidify LG’s long-term commitment to India, one of the world’s fastest-growing consumer markets. It also aligns with the group’s global strategy, as stated by LG’s CFO, Kim Chang-tae, during the April 2025 earnings call, who emphasized that the Indian listing would only proceed when it assured “proper valuation and maximum synergy”.
For investors, the IPO offers exposure to a market leader with strong fundamentals, extensive distribution, and a brand synonymous with reliability in India’s appliance sector.
Outlook
With the Indian IPO market firing on all cylinders and domestic liquidity cushioning global uncertainties, LG Electronics’ INR 15,000 crore issue is set to capture investor attention in October. Whether it can surpass the anticipated Tata Capital listing to become 2025’s headline IPO remains to be seen, but one thing is certain — LG’s market debut will be closely watched, both in India and abroad.
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