SEOUL, September 30 (AJP) - LG Electronics said Tuesday it will complete the long-awaited listing of its Indian unit by year’s end, in a move aimed at both raising funds and positioning the company as a household name in one of its most dynamic markets.
The company’s board approved the sale of a 15 percent stake in the Indian unit, or more than 101 million shares, and intends to file final documents with India’s market regulator, the Securities and Exchange Board of India, in the coming weeks, company officials said Tuesday. Pricing details and the timing of the sale will be determined once regulators give the green light.
The offering, which will not involve issuing new shares, ensures that all proceeds return to LG’s headquarters in Seoul.
Analysts said the move could strengthen the company’s financial position at a time when consumer electronics demand has softened globally. IBK Securities noted that while the final quarter of the year is usually a slow period, the IPO is likely to improve cash flow, and Moody’s has flagged the deal as a potential boost to LG’s credit profile.
The initiative has been led by Chief Executive Cho Joo-wan, who has pushed to elevate LG’s brand identity in India. “LG’s brand is highly regarded in India, and we aim to become a beloved national brand,” he told shareholders in March.
LG began laying the groundwork for the offering late last year and received preliminary approval from the Indian regulator in March, though the listing was delayed by market volatility.
The IPO, expected to be one of the largest by a consumer electronics company in India, is projected to raise about 115 billion rupees, or $1.8 billion.
Global corporations from Whirlpool to Nestle have tapped India’s capital markets in recent years to fuel local growth.
For LG, India has become a critical battleground for sales of appliances, televisions and smartphones, as the country’s middle class expands and competition with local and Chinese brands intensifies.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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