LG Electronics, the top home appliance manufacturer in South Korea, announced that it anticipates finishing the initial public offering (IPO) of its Indian subsidiary as early as next month to obtain funds for future expansion.

The IPO of LG Electronics India Ltd. is valued at approximately 1.8 trillion won ($1.28 billion), as per industry sources, according to Yonhap news agency.

LG Electronics announced that its board has sanctioned the sale of a 15percent interest in the subsidiary as a component of the IPO procedure.

The company stated that the sale date and pricing information have not been established yet.

The firm intends to file its final securities report with the Securities and Exchange Board of India (Sebi), with the offering anticipated to conclude once Sebi grants final approval.

LG Electronics initiated the IPO process in December by filing a preliminary listing application and obtained conditional approval from Sebi in March.

The anticipated proceeds significantly surpass LG Electronics' individual cash and cash equivalents of 1.1 trillion won as of the end of June.

Analysts, such as Moody's Investors Service, have stated that the listing of the Indian unit would enhance LG Electronics' financial profile even more.

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The IPO is anticipated to appraise the Indian subsidiary at over 12 trillion won, significantly exceeding comparable firms on the Indian stock exchange.

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Valued at approximately 7.2 trillion won, Voltas Ltd., a consumer electronics subsidiary of Tata Group in India, stands in contrast to Whirlpool India, which has a market capitalization of around 2.4 trillion won.

After the IPO, LG Electronics will maintain an 85percent ownership in the division, according to the announcement.

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The rising demand for consumer goods in India has attracted more attention from international firms in the domestic stock exchange. Hyundai Motor Co. achieved a historic $3.3 billion through its listing in India last year.