South Korea’s LG Electronics Redefines Global Strategy with Indian IPO

LG Electronics, the South Korean electronics giant, will float the Initial Public Offering (IPO) of its Indian subsidiary on Bombay Stock Exchange and National Stock Exchange in early May. The IPO will mop up as much as $1.5 billion, with LG becoming the second South Korean brand to be listed in India's equity market following Hyundai Motors. The issue will comprise a sale of 15% stake, valuing LG Electronics India at about $13 billion.

 

IPO funds will be utilized for the establishment of LG's third Indian manufacturing facility, expanding product lines specifically crafted for Indian customers, and merging and acquiring firms. LG has its sights on introducing ultra-low-cost appliances such as $100 air conditioners and washing machines customized for Indian traditional fabrics and reinforcing its position as a member of the world's fastest-developing consumer marketplace.

 

LG's action comes in the wake of the shifting balance of global trade and the increased U.S. tariffs, compelling the group to diversify its Asian production base. Group CEO Cho Joo-wan will ring trading on listing day with a ceremonial gesture, symbolizing the group's faith in the Indian economy and the growth of the middle class.

 

Source: Korea Economic Daily