LG Corp Chairman to visit India; IPO, new investments on agenda

LG filed a draft red herring prospectus with Indian regulators earlier this month, 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.

South Korean conglomerate LG Corp’s chairman and CEO, Kwang Mo Koo, is likely to visit India this month to finalise the initial public offering (IPO) plans of its local unit, LG Electronics India, and explore fresh investment opportunities in the country’s display and component manufacturing sector, The Economic Times reported, citing industry executives.

This marks the first visit by the top boss of LG Corp, the parent entity of all LG businesses, to India in at least a decade. The trip is scheduled around February 24, the report added.

LG Electronics India, the country’s largest white goods manufacturer by sales and market share, is preparing for a Rs 15,000 crore IPO expected around April-May. The offering will involve selling approximately 15 percent of the Indian unit’s shares, potentially valuing the company at around Rs 1 lakh crore.

An LG Electronics spokesperson from South Korea declined to comment on the development. Moneycontrol could not independently verify the report.

LG Corp’s primary presence in India is through LG Electronics, but the group also operates in the chemicals sector. Globally, LG is a leading producer of OLED and IPS displays for TVs, mobile phones, IT, automotive, and commercial display products. It also owns LG Innotek, which manufactures camera modules, photomasks, and tape substrates, along with components for automotive, mobile, display, and semiconductor industries. However, these businesses have yet to establish operations in India, unlike rival Samsung, which already has a display production unit in the country.

It remains unclear whether Koo will meet with Indian ministers or government officials during his visit. In 2023, LG Electronics Inc CEO William Cho visited India to assess the local business and production expansion. The Indian unit is also in the process of setting up a new factory at Sri City, Andhra Pradesh.

In December, LG Electronics India filed its draft red herring prospectus with SEBI for the IPO, which could become India’s fifth-largest, following Life Insurance Corporation, Hyundai Motors, Paytm, and Coal India.