Mumbai: LG Electronics Inc., South Korea's leading home appliances maker, made its stock market debut in India on Tuesday, the company said, underscoring its ambition to further solidify its home appliance and consumer electronics market lead in the world's most populous country.
According to Yonhap News Agency, LG Electronics India Ltd. (LGEIL), the company's Indian subsidiary, held a listing ceremony at the National Stock Exchange of India in Mumbai. The event was attended by chief executive officer (CEO) Cho Joo-wan and Jeon Hong-ju, managing director of the company's Indian operations, as well as local investors and analysts.
In the initial public offering (IPO), LG Electronics offered 15 percent of the Indian subsidiary's shares. The IPO price was set at the top of the indicative range at 1,140 rupees, or 18,000 won (US$12.62), per share, with subscriptions reaching 54 times the total offering. In total, LG Electronics generated approximately $1.31 billion through the listing.
LG Electronics has maintained the No. 1 position in the home appliance and consumer electronics market in India for more than a decade. The company said it expects the listing to deepen its roots in the market and strengthen growth momentum in India, where rising incomes and an expanding middle class are driving appliance adoption.
According to Boston Consulting Group, the proportion of Indian households in the middle-income bracket is expected to grow from 29 percent in 2020 to 46 percent by 2030. "India is now at the center of our Global South strategy," Cho said. "We look forward to advancing the growth of both LG and LGEIL."
Coinciding with the market debut, LG Electronics unveiled a long-term vision for the market built on three strategic pillars: creating products tailored to Indian lifestyles, aligning with India's manufacturing-led growth strategy, and aiming to position the country as a key driver of LG's Global South strategy.
The company also plans to enhance after-sales services and expand its annual maintenance contract programs to deepen long-term relationships with customers. It is simultaneously accelerating growth in local business-to-business domains, including commercial technology and information displays, along with heating, ventilation and air conditioning (HVAC) systems.
LG Electronics said it intends to grow alongside India by contributing to the country's rise as a global economic leader while reinforcing its own standing as a trusted national brand representing India's potential on the world stage.