Is the LG Electronics India IPO the biggest one in India’s history?

LG Electronics India, the Indian arm of South Korea’s global electronics giant, has filed for an initial public offering (IPO) with the Securities and Exchange Board of India (SEBI). The IPO is estimated to raise around ₹15,000 crore or $1.8 billion, according to an estimate by Moneycontrol.

The offering, which will be entirely an offer-for-sale (OFS) by LG, is poised to be among the top five largest IPOs in India. However, it will likely not surpass the massive ₹27,870 crore IPO raised by Hyundai Motor India earlier this year, which currently holds the title of India’s largest IPO.

Despite the shortfall in size, LG’s IPO is significant, as it reflects the growing interest of foreign companies in tapping India’s rapidly expanding capital markets.

According to LG India’s draft red herring prospectus (DRHP), the company will be selling a total of 101.8 million shares, with each share having a face value of ₹10. The entire proceeds from the IPO will go to its parent company, LG, rather than to the Indian subsidiary.

The proceeds will help LG, one of the leading players in these industries in India, to compete with its main rivals in India, Samsung and Whirlpool. LG operates in a range of sectors, including consumer electronics, home appliances, heating, ventilation, and air conditioning (HVAC), and IT hardware.

LG India’s decision to go public follows a trend of major global players seeking to tap into India’s growing investor base, with fundraising for Indian IPOs being the second-biggest so far this year after United States, according to a report by the Economic Times. The Indian IPO market has raised a record-breaking ₹1.19 lakh crore ($14 billion) in 2024, fuelled by strong investor demand, excess liquidity and impressive returns from recent IPOs.

Also Read : LG Electronics files for IPO with SEBI, plans to sell 101.8 million shares