On December 6, 2024, LG Electronics' Indian unit filed for an initial public offering (IPO) valued at 152.37 billion rupees ($1.80 billion), aiming to capitalize on the growing demand for consumer durables in India. The offering will consist of 101.8 million shares, with no new shares issued.
This IPO ranks among the top five in India for 2024, a year that has seen 298 companies raise $16.65 billion—more than double the previous year's total, according to S&P Global Market Intelligence.
Despite this growth, the Indian stock market has recently faced volatility, with foreign investors becoming net sellers last month. Mahesh Ojha, a research analyst at Hensex Securities, noted that this instability poses risks for the IPO's performance, particularly as LG faces stiff competition from rivals like Whirlpool and Samsung.
LG's appliances and electronics market is projected to grow by 12% over the next five years, driven by increased penetration in both urban and rural areas, as highlighted in their draft prospectus. The company reported a profit of 15.11 billion rupees in the last fiscal year, a 12% increase from fiscal 2023. Major investment banks, including Morgan Stanley and J.P. Morgan, are leading the IPO's book-running efforts.