Hyundai, LG Electronics IPOs share similar playbook in India

LG Electronics India is set to enter India’s primary market from Oct 7 to 9, aiming to raise roughly ₹11,500 crore through the sale of a 15% stake according to sources. The entire offering is structured as an offer-for-sale (OFS), with proceeds flowing entirely to the South Korean parent, rather than the Indian subsidiary.

The IPO involves the parent company offloading just over 10 crore shares, giving public investors a minority stake in the consumer electronics giant. It is noteworthy that the structure mirrors Hyundai Motor India’s record IPO in October 2024, which raised nearly ₹28,000 crore through a 17.5% stake sale, with funds directed to its Korean parent.

Also Read: LG Electronics India IPO to open on October 7, parent to sell over 10 crore shares

Here are the key similarities between LG and Hyundai IPOs:

Hyundai’s IPO debut was muted, opening slightly below its issue price despite strong institutional demand. Whether LG will replicate this pattern or achieve a stronger listing performance will be closely watched by investors.

These IPOs demonstrate how Korean conglomerates are using India’s capital markets not just to raise funds, but also to signal long-term commitment and unlock shareholder value. India’s robust retail investor base, high mutual fund inflows, and appetite from global funds make it an attractive venue for such marquee listings.

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