LG Electronics is planning an Initial Public Offering (IPO) of its Indian unit. The company is looking to file the preliminary prospectus by September and is targeting the IPO launch by the fourth quarter of the financial year 2025-26. This is as per a report on Economic Times.
According to the report, LG is looking to raise about $1.7 billion in its India IPO. The global electronics giant was planning an IPO of its India unit earlier this year in May; however, it halted its plan in April due to market volatility, says the report.
LG Electronics India’s capex plans
LG Electronics India is heavily investing in its capacity expansion in India. The company is setting up a 247-acre manufacturing facility in Andhra Pradesh. It will invest about $600 million in the facility over a period of four years.
LG India’s Andhra Pradesh facility will be rolled out in a phased manner, with the production of air conditioners in the first phase by the end of the calendar year 2026. Manufacturing of other products like washing machines and refrigerators is expected to start by 2029.
Indian government’s scheme for electronics manufacturers
LG India’s capacity expansion comes at a time when the Indian Government is looking to support the electronics component manufacturers in India. Earlier in March, Ahwini Vaishnaw, Electronics and IT minister, said that the government has approved the plan to invest $2.68 billion to support electronics component and semiconductor manufacturing in India.
The government is offering employment-linked incentives to the electronics manufacturers in India. LG India. Which is targeting to generate about 92000 jobs through its Andhra Pradesh project, will likely be a beneficiary of the governmental incentives.