Rumors have circulated about LG Electronics considering an IPO for its Indian unit, with reports indicating that the company is actively consulting investment banks for the potential listing.
LG Electronics has engaged Morgan Stanley, JPMorgan, and two Indian banks as arrangers for the upcoming initial public offering (IPO) of its Indian unit, according to Seoul Economic Daily, citing sources in the investment banking industry. The company aims to raise approximately KRW1 trillion (US$750 million) from the IPO by selling a portion of its stake in the Indian unit. Currently, LG Electronics fully owns the Indian subsidiary.
The rumor came after an earlier report by Bloomberg, where LG Electronics CEO William Cho said that the company is considering an IPO in India as part of its strategy to rejuvenate its long-standing consumer electronics business. He noted that there is growing interest from global investors but confirmed that no decision has been made yet.
In India, LG's unit experienced significant growth in the first half of the year, with revenue increasing 14% to a record KRW2.87 trillion (US$2.15 billion) and net income rising 27% to KRW198.2 billion.
2024 has been a year of remarkable resilience and growth for India's stock market. Despite global economic uncertainties and geopolitical tensions, the Indian market has consistently outperformed its peers, attracting significant foreign investment.
The Euromoney reported that India has seen a surge in IPOs, with over 189 new listings raising US$5.8 billion in the year to August 6. India ranks second globally in equity capital markets, raising US$32.6 billion in the same period.
"We have been closely monitoring the Indian market for IPOs and studying similar industry and IPO cases," Cho told Bloomberg.
Besides LG Electronics, Hyundai Motor has already filed for an IPO in India, aiming to increase its brand visibility and provide liquidity for its shares. Hyundai's case is expected to become India's biggest IPO.
