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LG Electronics enters India's stock market with successful IPO debut

Published: 14 Oct. 2025, 17:32 Updated: 14 Oct. 2025, 19:07

Managing Director and CEO of National Stock Exchange Ashish Chauhan, center right, and CEO of LG Electronics William Cho ring the bell during the listing ceremony of LG Electronics India Limited's Initial Public Offering at NSE, in Mumbai, India on Oct. 14. [REUTERS/YONHAP]

LG Electronics made its debut on India’s stock market Tuesday, marking its formal entry into the country’s capital market and underscoring its ambitions to become a household name in one of the world’s fastest-growing economies.

The company held a listing ceremony and corporate vision event at the National Stock Exchange in Mumbai. CEO William Cho called the listing a “strategic milestone.”

“India is now positioned as a key base in LG Electronics’s Global South strategy,” Cho said. “We will drive growth for both LG Electronics and our Indian unit together.”

Cho also rang the opening bell at 10 a.m. with Ashishkumar Chauhan, CEO of the National Stock Exchange.

The initial public offering (IPO) drew strong interest from Indian investors. During the three-day subscription period from last Tuesday to Thursday, LG’s Indian subsidiary attracted 4.43 trillion rupees ($49 billion) in bids, recording a subscription rate of 54.02 to 1 — the second highest in Indian IPO history.

The final offer price was set at the upper end of the guidance, 1,140 rupees per share. That valued the company at more than 12 trillion won ($8.3 billion). On the first day of trading, the stock surged over 50 percent above its IPO price, giving the Indian unit a market capitalization of around 17 trillion won — surpassing the company’s valuation of 13.5 trillion won.

Through the listing, LG Electronics will raise 1.8 trillion won in capital directly from the Indian market. The company said it expects to improve its financial health significantly by securing large-scale liquidity without increasing its debt or financial risk.

Managing Director and CEO of National Stock Exchange (NSE) Ashish Chauhan, left, and CEO of LG Electronics William Cho pose with the statue of the NSE bull, ahead of the listing ceremony of LG Electronics India Limited's Initial Public Offering at NSE, in Mumbai, India on Oct. 14. [REUTERS/YONHAP]

Moody’s described the IPO as a credit-positive move that will further strengthen LG Electronics’s financial indicators.

The company plans to use the proceeds to invest in future growth areas and enhance corporate and shareholder value.

The listing comes as the home appliance sector faces a global downturn. LG Electronics’s operating profit fell 8.4 percent in the third quarter this year from the previous year, following a steep 46.6 percent drop in the second quarter. The market has been squeezed by weakening demand, intensifying competition and rising tariff costs in major regions.

India, however, is emerging as a key growth market in the sector. Despite consistent economic growth, the country still has relatively low penetration of home appliances.

The share of middle-income households earning between $6,000 and $36,000 annually is projected to grow from 29 percent in 2020 to 46 percent by 2030, according to Boston Consulting Group.

To capitalize on this, LG Electronics said it aims to become a “national brand” in India through full localization. At the listing event, Cho presented the company’s new vision: “Make for India, Make in India, Make India Global.”

CEO of LG Electronics William Cho speaks during the listing ceremony of LG Electronics India Limited's Initial Public Offering (IPO) at the National Stock Exchange (NSE) in Mumbai, India, on Oct. 14. [REUTERS/YONHAP]

The "Make for India" initiative focuses on developing products tailored to local tastes and lifestyles. LG Electronics unveiled four new appliances designed specifically for the Indian market: a refrigerator, washing machine, air conditioner and microwave oven.

Through "Make in India," the company plans to upgrade its entire value chain — manufacturing, R&D, sales and service — within the country in line with the Indian government’s industrial policy.

In May, LG Electronics broke ground on a new factory in Sri City with a $600 million investment. It also plans to expand its software research center in Bengaluru, often called India’s Silicon Valley, as a hub for next-generation technologies.

LG intends to position its Indian unit as a core pillar in its Global South strategy, targeting high-growth emerging markets.

Other global companies are also investing heavily in India as geopolitical tensions, particularly between the United States and China, drive businesses to diversify their manufacturing bases.

Hyundai Motor raised $3.3 billion through its own Indian listing in October 2024 and now operates a production capacity of 1.5 million vehicles in the country.

Samsung Electronics is expanding notebook production at its Noida plant, while Apple supplier Foxconn is shifting some iPhone assembly operations from China to India.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY PARK HAE-LEE [[email protected]]