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LG Electronics plans to sell 15 percent stake in Indian subsidiary's stocks

Published: 30 Sep. 2025, 16:44 Updated: 30 Sep. 2025, 19:37

Rendering of LG Electronics’ Sri City plant, the company’s third home appliance factory in India [LG ELECTRONICS]

LG Electronics is restarting the process of listing its Indian subsidiary on the local stock market, with plans to sell a 15 percent stake in the unit.

The company said on Tuesday that its board of directors approved the sale of 101,815,859 shares — representing a 15 percent stake — in its wholly-owned Indian subsidiary. The move is part of an initial public offering (IPO) aimed at securing funds for the headquarters in Korea by listing the unit on the Indian stock exchange.

LG Electronics plans to submit a final prospectus to the Securities and Exchange Board of India (SEBI) soon, with the IPO expected to conclude as early as October. The disposal date and exact valuation have yet to be determined, the company said, adding that details regarding the IPO price range and schedule will be disclosed after final approval from SEBI.

The IPO process had been paused for five months due to heightened global market volatility and trade policy uncertainties stemming from U.S. President Donald Trump’s tariff policies. LG initially filed a preliminary application with SEBI in December 2024 and received conditional approval in March this year before halting the process in April.

Local Indian media estimate the IPO to be worth around 115 billion rupees ($1.3 billion). Since the offering will consist solely of existing shares — with no issuance of new stock — the entire proceeds will flow to LG Electronics without incurring interest or other financing costs.

According to LG Electronics' semiannual report, its standalone cash and cash equivalents totaled 1.1 trillion won ($784.5 million) as of the end of this year's second quarter. A successful IPO in India could more than double that figure, enhancing the company’s financial soundness.

The LG logo is seen on a flag at LG Electronics' headquarters in Yeouido, western Seoul on April 7. [YONHAP]

Amid declining global demand for home appliances and TVs, as well as the impact of trade tariffs, LG Electronics reported a 4.4 percent drop in revenue and a 46.6 percent drop in operating profit in the second quarter of this year compared to the same period in 2024.

The company is expected to see another year-on-year decrease in the third quarter of this year, with revenue and operating profit projected to fall by 4.1 percent and 18.4 percent respectively, according to local market tracker FnGuide.

To counter these challenges, LG Electronics began a voluntary retirement program last month, starting with its Media Entertainment Solution division, which oversees TVs. It is also focusing on expanding high-value-added businesses such as heating, ventilation and air conditioning while seeking new growth opportunities in Southeast Asian markets, including India.

The company is the market leader in home appliances in India, where its local unit posted 2.28 trillion won ($25.7 billion) in revenue and 209.7 billion won ($149.6 million) in net profit in the first half of this year.

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 SHIM SEO-HYUN [[email protected]]