LG Plans to Sell 15% Stake in India Unit

According to reports, LG Electronics held a board meeting on September 30 and approved the sale of 15% of its stake in its Indian subsidiary. Following the board's approval, LG plans to submit the final securities registration statement to the Securities and Exchange Board of India (SEBI), with the initial public offering (IPO) process expected to complete as early as next month.

LG will sell 101,815,859 shares, representing 15% of its stake in the Indian unit. Once SEBI grants final approval, the company will announce the price range and expected sale date for the IPO. The listing involves selling existing shares without issuing new ones, with all proceeds flowing to LG's headquarters.

Analysts suggest this move offers LG an opportunity to strengthen its balance sheet by converting large cash holdings into liquidity while avoiding interest costs. The sale is expected to raise around 115 billion INR (approximately 1.8 trillion KRW), significantly exceeding LG Electronics' cash and cash equivalents of 1.1 trillion KRW as of Q2.

LG filed preliminary listing documents last December to kick off IPO preparations and received SEBI's initial approval in March. While the company had initially aimed for a listing in the first half of this year, global market fluctuations, including in India, have prompted LG to adopt a more cautious approach.