India’s IPO Boom: LG Electronics Targets $8.7 Billion Valuation in Massive $1.3 Billion Listing

LG Electronics Inc.'s South Korean parent company initiated the order-taking process for the initial public offering (IPO) of its Indian subsidiary, LG Electronics India Ltd., on Tuesday, October 7. This substantial listing aims to raise $1.3 billion and is poised to establish the unit as the largest publicly traded home appliance manufacturer in the nation, with a peak valuation of 774 billion rupees (or $8.7 billion). The anticipated trading date for the shares is October 14.

This offering occurs concurrently with the launch of Tata Capital Ltd.'s $1.7 billion IPO, signaling strong conviction that local investor demand can absorb significant issuances, despite challenges facing the domestic equity market. Projections indicate that the collective proceeds from Indian IPOs are set to surpass $5 billion in October, which would establish a new monthly record.

The South Korean entity is divesting up to 101.8 million shares of its unit at a price range between 1,080 rupees and 1,140 rupees per share. As the three-day bidding window opened, the LG India IPO secured bids for 30% of its available shares during the morning hours in Mumbai. This follows a strong institutional response, where the company successfully secured 34.7 billion rupees from the anchor book by allotting 30.5 million shares at the top price of 1,140 rupees.

The anchor investors represented a broad mix of international and domestic financial powerhouses. Global participants included the sovereign wealth funds of Singapore, Norway, and Abu Dhabi, alongside international money managers such as Fidelity International Ltd. and BlackRock Inc. Major domestic institutional investors, including Nippon Life India Asset Management Ltd., ICICI Prudential Asset Management Co., and SBI Mutual Fund, also committed capital to the offering.

This wave of new listings is propelled by substantial liquidity from retail and domestic institutional sources, with capital flows into recurring local investment funds surpassing $3 billion in most months of 2025. This surge illustrates the financial community's confidence in the underlying strength of the Indian economy.

The Mumbai listing concludes an approximately year-long process since its initial December filing, which encountered delays amid global trade uncertainty and market volatility. The resulting valuation of $8.7 billion is significantly below the initial target of $15 billion. Despite this adjustment, the offering values LG India’s shares at 38 times its earnings over the previous year. For comparison, the parent company's stock trades at around 14 times earnings, while local industry rivals, such as Voltas Ltd. and Havells India Ltd., trade at multiples more than 50 times earnings.

The LG India offering is the fourth billion-dollar IPO in the country this year, following listings by Hexaware Technologies Ltd., HDB Financial Services Ltd., and Tata Capital. The share sale was arranged by a group of banks including Axis Bank Ltd. and the Indian subsidiaries of Bank of America Corp., Morgan Stanley, Citigroup Inc., and JPMorgan Chase & Co.