LG Electronics CEO Cho Joo-wan, right, gestures during his visit to the company's booth at the IFA 2024 Consumer Electronics Show in Berlin, Sept. 6. Courtesy of LG Electronics

LG Electronics has officially launched its bid to go public in India, betting high on the country's attractiveness as a budding electronic appliance market and a lucrative investor destination.

According to LG Electronics' regulatory filing, Monday, LG Electronics India filed its draft prospectus with the market regulator Securities and Exchange Board of India (SEBI) on Friday. The process is anticipated to take about three months, during which the company will fix its offering price and date and file the official red herring prospectus.

Through the initial public offering (IPO), LG Electronics, which fully owns the Indian unit, will offer its 15 percent stake in LG Electronics India without issuing new rights. Local reports assume that the company will be able to raise $1.8 billion through the offering, which will value LG Electronics India at $13 billion.

LG Electronics has been exploring the timing for the Indian unit's IPO in a view that the Indian IPO market has been bustling in recent years.

According to an S&P Global Market Intelligence report, 298 companies have gone public on the Indian stock markets this year as of Dec. 3, raising a combined $16.6 billion. Among companies debuted this year, Hyundai Motor India's $3.3 billion listing in October gained attention, becoming India's largest IPO ever.

This is attributable to the country's economic growth, favorable market environments, policies and regulations toward foreign investors. Despite ups and downs, the country's economic growth has been hovering over 5 percent for years, while the Indian government's "Make in India" initiative is encouraging the country's manufacturing sector and providing policy supports for foreign investments.

The ongoing economic rivalry between the United States and India is also highlighting India's attractiveness as an investment destination. Not only LG Electronics, but also other big Korean businesses are tapping into the Indian market, to defy risks stemming from their high reliance on China.

Against this backdrop, the growth potential of the Indian electronic appliance market has prompted LG Electronics to bet high on the country — LG Electronics CEO Cho Joo-wan said in September that the company hopes to become "the most beloved company by the Indian public."

Despite being the world's most populated country, India has a relatively low penetration rate for household appliances. Last year, the penetration rates for refrigerators, washing machines and air conditioners in India stood at 38 percent, 17 percent and 8 percent, respectively, significantly lower than those of countries like China.

The rising trend of nuclear families and an increase in the number of working women are driving demand for new appliances that reduce household chores, contributing to the market's growth potential. According to Korea Trade-Investment Promotion Agency, India's home appliance market, was valued at $11 billion in 2018 and is expected to double to $21 billion by next year.

Meanwhile, Korea's logistics giant CJ Logistics is also preparing for the IPO of its Indian unit, CJ Darcl Logistics. CJ Darcl already submitted its offering document to the SEBI last year, and passed the preliminary screening process in March.