LG Electronics Inc, a South Korean electronics company headquartered in Yeouido, Seoul, is planning to increase the valuation of its Indian unit to as much as $15 billion. The company might raise the valuation after initial feedback from analysts and investors, Bloomberg reported as said by people familiar with the matter.
The South Korean giant is targeting for a planned listing in Mumbai in the first half of 2025. The company is also planning to start a formal roadshow for LG Electronics India Pvt.’s IPO within the next two months, the people said, asking not to be identified because the information is private.
Earlier, the electronics company had eyed a valuation of around $13 billion, Bloomberg News reported in September.
The people further revealed that LG has been sounding out preliminary interest from potential investors and deliberations are ongoing and details could change.
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LG may ultimately seek a slightly lower valuation for the business based on final demand, one of the people said. However, a representative for LG declined to comment on the matter.
Earlier this month, LG had filed a red herring prospectus with SEBI detailing plans to sell as many as 101.82 million shares, none of which will be new. Morgan Stanley, JPMorgan Chase & Co., Axis Capital Ltd., Bank of America Corp. and Citigroup Inc. will manage the IPO, Bloomberg reported.
The company could seek to raise $1 billion to $1.5 billion in the IPO, people familiar with the matter have said.
This year, the shares of LG have dropped about 13%, leaving the company with a market value of $10 billion.
Meanwhile, India has had a strong year for share sales with the growing interest from global investors. Nearly $18 billion has been raised via IPOs this year, according to data compiled by Bloomberg.
Those listings include a record $3.3 billion IPO by carmaker Hyundai Motor Co.’s Indian unit in October and two more that topped $1 billion, by food delivery firm Swiggy Ltd. and NTPC Green Energy Ltd, it added.
