LG Electronics targets India's growth with $1.3 billion IPO

LG’s IPO in India reflects its commitment to strengthening its presence in one of the world’s fastest-growing markets, where demand for consumer electronics continues to rise, offering a significant opportunity for long-term growth

LG Electronics’ decision to launch an initial public offering (IPO) in India is strategically aimed at tapping into the country's massive growth potential. According to CEO Cho Joo-wan, the expanding demand for consumer electronics and home appliances in India is the primary reason behind the move. The announcement was made during a press conference at the CES 2025 in Las Vegas. Cho highlighted that the IPO, which was filed with the Indian stock exchange in December, is set to raise up to 2 trillion won (around $1.3 billion). The IPO is expected to occur in April or May.

India’s consumer durables market is growing rapidly, prompting many global companies to take a serious interest in investing in the region. For example, Hyundai Motor’s IPO last year raised a record $3.3 billion, marking India as a key market for international businesses. However, Cho stressed that the IPO is not just about raising capital but about capitalizing on India’s market potential. “The primary driver of our IPO is India’s growing market, not the funds we will raise,” Cho said, emphasizing that the capital raised would be used for various developmental needs.

The Indian market presents enormous growth opportunities for LG, with millions of households still without basic appliances such as air conditioners, refrigerators, washing machines, and televisions. Cho stated that the goal is to cater to these unfilled needs, expanding LG's reach across the nation. As part of this expansion, LG plans to increase its investments in India, recruit more local talent, and enhance its production capabilities. The company currently operates two manufacturing facilities in India and is considering scaling these operations further.