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LG postpones IPO for Indian unit due to 'unfavorable' market conditions
South Korean major LG Electronics has delayed the upcoming initial public offering (IPO) for its Indian unit, amid volatility in the local share markets, according to industry insiders.
Earlier, the South Korean Chaebol was planning the IPO and subsequent listing of LG Electronics India on the bourse in the second week of May. However, it has been deferred for at least one quarter.
LG may delay the IPO even further, if in August the consumer electronics major finds market sentiment not good, industry insiders told PTI.
The IPO, which was estimated to be around Rs 15,000 crore in some media reports, had not attracted a very warm reception from the investors, they said.
The market is facing uncertainties from the new tariff regulation by the Trump administration, and also the latest development on the terror attack at Pahalgam in Jammu & Kashmir.
An LG Electronics spokesperson said a final decision on this will be taken based on market conditions.
"The procedures for LGEIL's IPO are currently underway. The final decision on the listing will be made based on market conditions and other relevant factors. No definite plans have been confirmed at this time. We are closely monitoring the market and will consider a strategic timing that ensures a proper valuation of the company," he said.
On December 6, 2024, LG Electronics India Ltd had filed preliminary papers with Sebi for an IPO wherein the parent company will sell over 10.18 crore shares amounting to a 15 per cent stake.
The proposed IPO is entirely an offer for sale (OFS) of 10.18 crore equity shares by promoter LG Electronics Inc with no fresh issue component, according to the draft red herring prospectus (DRHP).
Its South Korean parent company LG Electronics Inc will sell 10,18,15,859 equity shares of face value of Rs 10 each, according to the DRHP.
Since the public issue is completely an OFS (offer for sale), LG Electronics India will not receive any IPO proceeds. The funds raised will go to the South Korean parent.
LG Electronics India is a leading player in major home appliances and consumer electronics. The company's products are sold to both B2C and B2B customers in India and internationally. It also provides installation, repair, and maintenance services for all its products.
LG Electronics India's revenue from operations was Rs 64,087.97 crore for the financial year ended March 31, 2024.
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