South Korean giant LG Electronics has opened subscriptions for its Indian subsidiary’s initial public offering (IPO) worth $1.3 billion, one of the largest consumer-goods listings in India.
The move, which coincides with Tata Capital’s $1.7 billion issue, reflects how investors are recalibrating portfolios towards tangible manufacturing and consumer sectors, even as global markets face tech corrections and geopolitical risks.
With a valuation reaching as high as ₹774 billion ($8.7 billion), LG Electronics India aims to become the largest listed home-appliance maker in the country.
Shares are expected to debut on 14 October, following a three-day bidding process that began on Tuesday.
Indian IPO market sees shift toward household and industrial names
The simultaneous launches of LG Electronics India and Tata Capital signal a remarkable broadening of India’s IPO pipeline.
Together, the two offerings are expected to help push total October proceeds past $5 billion — potentially setting a new monthly record for the country.
As of mid-day Tuesday, LG’s issue had attracted bids for about 30 percent of shares offered, while Tata Capital’s was already 50 percent subscribed by its second day, according to exchange data.
The brisk pace of subscriptions suggests that investors are increasingly confident about India’s long-term growth, even as valuations remain high across sectors.
Domestic mutual fund inflows have played a critical role in sustaining demand.
Data show recurring investment plan contributions have consistently exceeded $3 billion monthly through 2025, providing a steady capital base for primary issuances.
Global funds join domestic investors in LG’s anchor sale
The LG India IPO has drawn strong participation from both global and domestic institutions.
Sovereign wealth funds from Abu Dhabi, Norway, and Singapore, along with asset managers like BlackRock and Fidelity International, took part in the anchor round.
Major Indian fund houses — including SBI Mutual Fund, ICICI Prudential Asset Management, and Nippon Life India Asset Management — also subscribed.
The scale of institutional participation underscores how foreign investors view India’s consumer-electronics manufacturing as a structural growth story, supported by government incentives and rising domestic demand.
Analysts note that the listing could serve as a benchmark for future manufacturing IPOs, offering diversification beyond tech-heavy offerings that have dominated in recent years.
Portfolio managers say the surge of mutual-fund inflows has created sustained demand for new issues.
While this liquidity is boosting valuations, it also highlights the need for a consistent supply of quality IPOs to absorb investor appetite.
Valuation adjusted after market volatility delays
The upcoming listing caps a year-long process since LG India’s December 2024 filing, which had initially been delayed by market fluctuations and global uncertainty.
The firm has since trimmed its valuation expectations from nearly $15 billion to around $8.7 billion, balancing investor sentiment with realistic earnings multiples.
According to Choice Equity Broking, LG India’s offer is priced at about 38 times its trailing twelve-month earnings.
By comparison, its South Korean parent trades at roughly 14 times, while Indian peers such as Havells India and Voltas command more than 50 times earnings.
That pricing places LG India squarely between global and domestic peers, offering potential upside while signalling prudence in valuation amid uncertain macro conditions.
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