Seoul: LG Electronics Inc., South Korea’s prominent home appliance maker, announced its intention to finalize the initial public offering (IPO) of its Indian subsidiary as early as next month. This strategic move aims to secure funding for future growth.

According to Yonhap News Agency, the IPO of LG Electronics India Ltd. is projected to be valued at approximately 1.8 trillion won (US$1.28 billion). LG Electronics has confirmed that its board has approved the sale of a 15 percent stake in the subsidiary as part of the IPO process. The exact date of the sale and further specifics have not yet been disclosed.

Post-IPO, LG Electronics will maintain an 85 percent stake in its Indian unit. The increasing demand for consumer durables in India has attracted significant interest from international companies in the local stock market. Last year, Hyundai Motor Co. successfully raised $3.3 billion through its listing in India.