LG Electronics India Trims IPO Dilution To 10%, Targets Mid-October Listing

LG Electronics India has reportedly changed its initial public offering (IPO) strategy, scaling back the planned dilution and valuation to better align with current market conditions.

Initially targeting an IPO of around ₹15,000 crore by offering 15% of its equity, the company has now reduced the size to ₹10,000 crore, a 20% drop from its previously assessed valuation peak of ₹1 lakh crore, according to a report by The Times of India on Tuesday.

The revised plan will see LG divest about 10% of its stake, down from the earlier 15%. As per the report, the IPO will be structured entirely as an offer-for-sale by the parent company, with no fresh capital infusion into the Indian business.

LG Electronics India announced that the IPO timeline is now set for mid-October, contingent upon improving market stability. The company delayed the public offering in May due to market turbulence caused by Donald Trump-imposed tariff challenges, but now sees October as the optimal window if conditions remain supportive.

Market conditions for the consumer electronics sector are expected to improve after the Indian government slashed the GST rate on items, including televisions, washing machines, air conditioners, and refrigerators, to 18% from 28%.

Morgan Stanley, J.P. Morgan, BofA Securities, and Citi are among the IPO's lead book-running managers.

In May, the company began building its third manufacturing plant in Sri City, Andhra Pradesh, with an investment of $600 million. The facility is expected to create 1,495 direct jobs and about 10,000 indirect employment opportunities. Its two other plants are in Greater Noida and Pune.

LG’s IPO follows the debut of Korean automaker Hyundai’s India arm, which was listed in October 2024 through a ₹27,870-crore offering.

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