(fxcue news) - LG Electronics India Pvt. Ltd., affiliated to South Korean consumer electronics major LG Electronics Inc., has filed for initial public offering in India. As per reports, the IPO would raise up to $1.8 billion or around 15,000 crore rupees. The company has filed the draft prospectus with Indian markets regulator SEBI to sell 101.82 million shares of face value of 10 Rupees each. The offer would constitute 15% of the post-offer paid-up equity Share capital of the Indian unit. The entire proceeds from the offer will go to parent LG Electronics. Morgan Stanley, JP Morgan, Axis Capital, BofA Securities and Citi will manage the IPO. Separately, LG Electronics India reportedly announced plans to set up a new plant in Andhra Pradesh to boost its manufacturing capacity in the country. The company currently manufactures its products at the Noida Manufacturing Unit and the Pune Manufacturing Unit. LG Electronics India, which sells electronic goods comprising washing machines, TVs, air conditioners and refrigerators, was established in India in January 1997. In 2024, the company reported revenue of 21,353.4 crore rupees, and profit of 1,511.0 crore rupees, both higher than the prior year. In its filing with the Sebi, the company said it is increasing the sourcing of raw materials from the local market, which would help it to meet consumer demands and lower inventory and related costs. This would allow the company to competitively price the products. Despite localisation efforts, the company said it relies on other members of the LG Group for foreign components and finished products, mainly in the premium segment. Key imports are primarily sourced from countries such as China, South Korea, and Japan, reflecting a strategic focus on enhancing product quality and technological advancement. The company also said it fears competition from global brands, including its South Korean parent entity, and Indian players in the consumer electronics and home appliances industry. These include Voltas, Havells, Godrej, Blue Star, Haier, Whirlpool, Philips, Samsung and Sony. The company also faces competition from emerging business models, such as brands introduced by consumer electronics retail chains.