LG Electronics Could Look Into IPO In India To Capitalise On Stock Market Boom: Report

Speaking in an interview, William Cho, CEO, LG Electronics, said that the company is considering a debut in the Indian stock market among other options to help renew its consumer electronics business

LG Electronics is looking to make a public listing for its Indian business. The company is planning an IPO for its Indian entity to capitalise on the boom in the Indian stock market and clock $75 billion in electronics revenue by the end of the decade.

Speaking with Bloomberg Television, William Cho, CEO, LG Electronics, said that the company is considering a debut in the Indian stock market among other options to help renew its consumer electronics business. This marks the first time the firm has publicly talked about a debut in the Indian market, reported Bloomberg.

Talking about the potential IPO in the Indian market, Cho in the interview said, “It is one of many options we can consider. I understand there’s increased interest among global investors. As of now, nothing is confirmed.”

LG Electronics is based out of South Korea and is a direct competitor of Samsung Electronics Co. Cho has set a target of expanding the electronics business for LG to reach an annual revenue of 100 trillion won ($75 billion) by 2030, the report noted. Comparatively, the company clocked an overall revenue of $65 billion in 2023. The firm aims to generate more income from enterprise clients, and has a target of 45 per cent of sales from other firms by 2030, as compared to 35 per cent currently.

The report noted that about 189 firms plan to offer their shares for sale via maiden offers to raise $5.6 billion this year. The Indian capital markets are expected to be one of the busiest in terms of IPOs. Earlier this year in June, another South Korean company, Hyundai Motor Co, filed draft papers for a maiden listing worth nearly $3.5 billion. Thus, any possible IPO would coincide with the surge going on in the Indian markets.

Notably, LG’s India business witnessed a 14 per cent increase in its revenue in the first six months of the year to a record 2.87 trillion won, while the unit’s net income soared 27 per cent during the period to 198.2 billion won.