By Dhwani Pandya and Nandan Mandayam
MUMBAI/BENGALURU (Reuters) -LG Electronics is looking to position India as a global manufacturing hub, an executive of its Indian unit said on Wednesday, as the appliance maker revives its long-delayed India listing, targeting a valuation of $8.73 billion.
LG Electronics India [LGEL.NS], which has invested $600 million in its upcoming factory in Andhra Pradesh state, aims to raise up to 116 billion rupees ($1.3 billion) in what will be the country’s third-largest share sale this year.
It has set a price band of 1,080-1,140 rupees per share in the initial public offering, an offer-for-sale, with the parent company offloading a 15% stake.
LG favours India as a manufacturing hub for its competitive labour costs and strong domestic demand, Chief Sales Officer Sanjay Chitkara said.
The upcoming factory – its third in the country so far – would be key to opening up newer markets like Europe, in addition to the 47 countries it already ships goods to, Chitkara said.
Currently, exports are worth $160 million, or 6% of the overall revenue for the firm, which is India’s second-largest appliance maker.
The company competes with Whirlpool and Samsung in a domestic market that was worth $38.2 billion as of 2024, selling products such as refrigerators, washing machines and televisions.
Having initially filed for an IPO last December, LG Electronics India sought a listing by May, but delayed the share sale citing market volatility.
Bidding opens on October 7 for retail investors, while large anchor investors can place bids a day earlier.
LG now joins fellow South Korean company Hyundai Motor Co and U.S.-based office space provider WeWork in listing their Indian units in a market that, according to Emkay Global Financial Services’ Yatin Singh, “offers high valuations because of the abundant domestic money supply.”
The IPO also comes at a time when India has lowered consumption taxes on several goods, including electronics, to 18% from 28% to spur demand during the lucrative festive season.
Together with non-bank lender Tata Capital’s $1.75 billion issue – the country’s largest this year – these IPOs will kick off a busy third-quarter for India’s primary markets, potentially fetching $8 billion in proceeds.
As of September 30, companies in India have raised about 909.8 billion rupees through IPOs, up 18% from the same period last year, according to LSEG data.
(Reporting by Dhwani Pandya in Mumbai, Nandan Mandayam in Bengaluru, Chris Thomas in Mexico City; Additional reporting by Vivek Kumar M; Editing by Janane Venkatraman, Shailesh Kuber and Alan Barona)
