South Korean major LG Electronics (LG) has got it Indian subsidiary, LG Electronics India Limited (LGEIL), listed on the National Stock Exchange of India (NSE).
LG is the second south Korean major to list its Indian subsidiary on the stock exchange. Automobile giant Hyundai Motor India Ltd. (HMIL) has already got listed on the Indian stock exchange.
The listing of their subsidiaries on the Indian stock exchanges suggest that both the South Korean companies are betting big on India, which is the fastest growing economy.
On October 14, LG held a listing and future vision announcement ceremony at NSE in Mumbai, attended by LG Electronics CEO William Cho, CFO Chang-tae Kim, managing director of LGEIL Hong-ju Jeon, board chairman Dae-hyun Song, as well as NSE CEO Ashish Chauhan, investors and analysts.
At the market’s opening bell, LG CEO Cho and NSE CEO Chauhan jointly rang the ceremonial gong to celebrate the start of trading for LGEIL.
In the IPO, LG offered 15 per cent of LGEIL’s issued shares (101,815,859 shares) through an offer for sale. The IPO price was set at the top of the indicative range at INR 1,140 per share, with subscriptions reaching 54 times the total offering. The listing generated approximately USD 1.31 billion1 (INR 116.05 billion).
According to Boston Consulting Group, the proportion of Indian households in the middle-income bracket (annual income USD 6,000–36,000) is forecast to rise from 29 per cent in 2020 to 46 per cent by 2030.
“India is now at the center of our Global South strategy,” said William Cho, CEO of LG Electronics. “We look forward to advancing the growth of both LG and LGEIL,” he added.
Make India Global
Alongside its market debut, LG presented a long-term vision to build on its leadership in India and strengthen its position. With India’s population and its status as one of the world’s largest potential markets, LG plans to expand strategies tailored to local customers and market needs. Through this, LG aims to maintain its current position as number one player in major home appliances and consumer electronics in India as per the market share in the offline channel.
LG has established a self-sufficient local value chain spanning R&D, production, sales and service. In addition to its existing plants in Noida and Pune, the company is investing Rs 50.01 billion in a new factory in Sri City, expected to create 1,900 direct and indirect jobs.
