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LG Electronics CEO William Cho Addresses Shareholders on Business Strategy at Annual General Meeting Photo = Yonhap news |
[Alpha Biz= Kim Jisun] LG Electronics plans to list its Indian subsidiary on the local stock exchange in early May, aiming to raise up to $1.5 billion (approximately KRW 2.2 trillion). The company will use the proceeds to develop India-specific products—including a $100 air conditioner—as well as to build a third factory, pursue strategic M&A, and enhance shareholder returns.
According to industry sources on Sunday, the Securities and Exchange Board of India (SEBI) is expected to complete the approval process for LG's IPO filing soon. LG anticipates the listing could take place in early May and has scheduled a visit to India by CEO William Cho around that time.
Through the IPO, LG will sell 15% of its stake in the Indian subsidiary, with the funds earmarked for expanding its product lineup tailored to South Asian markets. This includes launching ultra-low-cost air conditioners priced at $100 (approx. KRW 145,000), targeting India’s low-income households.
If successful, this will be LG's first new home appliance factory in India in nearly two decades since 2006. The company plans to invest more than $500 million in building a third plant in Sri City, located in southeastern India, with operations scheduled to begin next year.
The move is part of LG's broader strategy to reduce its reliance on the U.S. market, which has been impacted by rising tariffs, and to aggressively expand its footprint in high-growth regions such as India.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
