LG India has selected banks for its Indian IPO, plans to present offer soon as it eyes $1.5 bn valuation

South Korea’s LG Electronics Inc. is preparing for a potential initial public offering (IPO) of its Indian business, which could raise up to $1.5 billion. According to sources familiar with the matter, the company has selected several major banks, including Bank of America, Citigroup, JPMorgan Chase, and Morgan Stanley, to manage the offering.

The IPO could take place as early as next year and aims to raise between $1 billion and $1.5 billion, giving LG Electronics India Pvt Ltd. a potential valuation of around $13 billion.

While discussions are ongoing, the size and timing of the offering may still change as the company finalises details. Sources have indicated that LG could file its prospectus with India’s stock market regulator as early as next month.

More from Tech

How ChatGPT is becoming everyone’s BFF and why that’s dangerous America ready for self-driving cars, but it has a legal problem

There is also the possibility of adding more banks, including local ones, to the list of arrangers at a later stage. Representatives for LG and the banks involved have declined to comment on the matter.

India has emerged as a prime location for global investors looking to capitalise on the country’s growth potential. Several major companies are planning to list their Indian units, with Hyundai Motor Co. also eyeing a large IPO for its local operations. This trend reflects the increasing attractiveness of the Indian market for international businesses.

For LG Electronics, the IPO of its Indian unit is part of a broader strategy to expand its electronics revenue and rejuvenate its consumer electronics segment. The company has set an ambitious goal of reaching $75 billion in electronics revenue by 2030.

Impact Shorts

More Shorts

America ready for self-driving cars, but it has a legal problem

Alibaba, Baidu begin using own AI chips as China shifts away from US tech amid Nvidia row

In an interview with Bloomberg Television, LG’s CEO William Cho indicated that exploring an IPO is one of the steps the company is considering to achieve this target and boost its presence in the global market.

This potential IPO would mark a significant development for LG’s Indian business, positioning the company to take advantage of India’s growing consumer base and solidify its standing in the electronics sector. As plans progress, LG’s move could further highlight India’s increasing importance as a hub for global investment and major financial deals.