LG Electronics India IPO Set for October 7 Launch; Parent to Divest Over 100 Million Shares

The Indian stock market is gearing up for a blockbuster public offering as LG Electronics India, a household name in consumer durables, has officially announced the launch of its Initial Public Offering (IPO) on October 7, 2025. This highly anticipated issue will see its South Korean parent company, LG Electronics Inc., offload a significant stake in its successful Indian subsidiary.

The IPO, which will be open for subscription until October 9, 2025, is set to be one of the largest in the Indian market this year. Bidding for anchor investors is scheduled to commence a day earlier, on October 6. This move marks the second major listing by a South Korean conglomerate on Indian bourses, following the successful debut of Hyundai Motor India in October 2024.

Offer Details: A Complete Offer for Sale

According to the Red Herring Prospectus (RHP) filed with the market regulator, the IPO is structured entirely as an Offer for Sale (OFS). The promoter, LG Electronics Inc., will sell up to 10.18 crore (101.8 million) equity shares. This stake sale represents approximately 15% of the company's post-offer paid-up equity share capital.

Crucially, as this is a pure OFS, LG Electronics India will not receive any of the proceeds from the public issue. The entire sum raised will go directly to the selling shareholder, the South Korean parent company. The primary objective of the listing is to achieve the benefits of listing the equity shares on the stock exchanges and to facilitate the stake sale. While the exact issue size has not been disclosed, market analysts estimate it could be in the range of ₹11,500 crore to ₹15,000 crore, potentially valuing the Indian arm at around $9 billion to $12.5 billion.

A Market Leader with Strong Financials

LG Electronics India has established itself as a dominant force in the country's home appliances and consumer electronics landscape since its incorporation in 1997. The company holds a leadership position in multiple product categories, including washing machines, refrigerators, air conditioners, and televisions.

The brand's robust market presence is backed by strong financial performance. For the financial year ended March 31, 2024, the company reported significant revenue from operations, making it a top performer when compared to its listed industry peers such as Voltas, Havells India, and Whirlpool of India. Its extensive distribution and service network, spanning both urban and rural India, is a key competitive advantage. The company operates two state-of-the-art manufacturing facilities in Noida and Pune.

Investor Allocation and IPO Management

The IPO has a structured allocation for different investor categories. As per the RHP, 50% of the net issue is reserved for Qualified Institutional Bidders (QIBs). The remaining portion is split between Retail Individual Investors (RIIs), who are allocated 35%, and Non-Institutional Investors (NIIs), with a 15% reservation. A portion of the shares has also been reserved for eligible employees.

A consortium of leading investment banks is managing the issue, including Axis Capital, Morgan Stanley India, JP Morgan India, BofA Securities, and Citigroup Global Markets. KFin Technologies has been appointed as the registrar for the issue. The shares are proposed to be listed on both the BSE and the National Stock Exchange (NSE), with a tentative listing date of October 14, 2025.

What Investors Should Watch For

The LG Electronics India IPO presents a unique opportunity for investors to own a piece of a well-established, profitable, and market-leading consumer durables company. The brand's strong recall, extensive reach, and consistent financial track record are significant positives.

However, investors should also note that the IPO is entirely an OFS, meaning the capital raised is not being invested back into the Indian company for growth or expansion. The pricing of the issue, which will be announced closer to the opening date, and the overall market sentiment will be key factors to consider. This public offering is expected to attract significant interest from both institutional and retail investors, making it a pivotal event for the Indian capital markets this festive season.