LG Electronics Targets Late 2025 for High-Stakes Indian Unit IPO Relaunch

LG Electronics is gearing up for a second shot at its Indian unit IPO—because nothing says 'confidence' like a post-pandemic, post-crypto-crash market debut.

The move comes as global tech giants scramble to capitalize on India's manufacturing boom—while conveniently ignoring its regulatory whiplash.

Will investors bite? Or is this just another corporate Hail Mary before the next economic downturn?

TLDR;

• LG Electronics is considering reviving the IPO of its Indian unit by late 2025 after pausing plans in 2023 due to market uncertainty.
• The potential $1.7 billion listing comes amid a rebound in India’s IPO market, which has seen record fundraising in FY25.
• LG is also investing $600 million in a new manufacturing plant in Andhra Pradesh, reinforcing its long-term commitment to India.
• With deepening localization and rising consumer demand, India has become LG’s second-largest market after the United States.

LG Electronics is reportedly preparing to reignite its plans for an initial public offering of its Indian unit by the end of 2025. The MOVE follows a prior delay in April 2023, when the company shelved the IPO amid heightened market volatility and investor concerns around valuation.

IPO Revival as Market Conditions Improve

According to sources familiar with the matter, the South Korean electronics giant is considering re-filing its draft red herring prospectus after summer 2025, pending favorable market signals.

The IPO, which could raise as much as $1.7 billion, is being closely watched as one of the potential marquee listings on India’s public markets. While a final decision has yet to be made, sources indicate LG is encouraged by improving conditions in India’s capital markets and could accelerate plans if momentum continues.

India’s IPO Market Offers a Renewed Opportunity

The backdrop for LG’s potential listing is markedly different from when it first explored going public in 2023. India’s equity markets have since staged a strong recovery. The NSE Nifty 50 Index has rebounded more than 12 percent from March lows, while mainboard IPO activity has surged. In FY25 alone, companies raised ₹1,630 billion, more than doubling the previous year’s total.

This resurgence has bolstered corporate confidence in India’s IPO pipeline and could provide LG with a more stable platform to secure a strong valuation. Analysts say the company’s strategy to re-time the listing demonstrates a maturing approach among foreign multinationals that are increasingly tailoring market entry and funding timelines to local dynamics.

Manufacturing Push Strengthens LG’s India Presence

In parallel with its listing ambitions, LG Electronics is also doubling down on its manufacturing footprint in India. In May, the company announced a $600 million investment to build a new production facility in Andhra Pradesh. The plant, LG’s third in India, is slated to begin producing air conditioners in 2024, before expanding into refrigerators and washing machines by 2029.

This investment aligns with India’s sharp rise in consumer demand, especially in the home appliance segment. Air conditioner usage alone is forecast to grow from 93 million units in 2023 to 240 million by the end of the decade, driven by rising temperatures and a growing middle class.

Long-Term Strategy Take Center Stage

Beyond infrastructure, LG is pursuing an aggressive localization strategy, sourcing over half its components domestically and facilitating the entry of Korean suppliers into the Indian market. The Andhra Pradesh plant is expected to produce up to 1.5 million air conditioning units annually by 2026, significantly bolstering LG’s regional production capabilities.

While the IPO could give LG additional capital to scale its India operations, the company’s current investments reflect a deeper strategic alignment. India is now LG’s second-largest market after the United States, underscoring why its long-term bets on the subcontinent go far beyond public listing plans. The upcoming months will determine whether those ambitions will soon be matched by a return to India’s public markets.