LG Electronics India’s IPO Plans on Hold Amid Market Volatility

LG Electronics has announced that it is not rushing into the planned ₹15,000-crore initial public offering (IPO) of its Indian subsidiary. The decision was shared by chief financial officer Chang-tae Kim during the South Korean company’s first-quarter earnings call. Citing a volatile share market and broader macroeconomic uncertainty, Kim stated that the company is not under pressure to list LG Electronics India immediately.

According to Kim, “the holding company has a stable financial structure and the continued business progress achieved by the Indian subsidiary,” allowing LG to take a measured approach.

Read More: LG Electronics India to File Updated IPO Draft in May?. 

Valuation and Timing Key to IPO Strategy

Rather than committing to an immediate listing, LG Electronics plans to make its final decision based on a 2-pronged strategy: assessing the market conditions to secure a fair valuation for the Indian arm, and choosing a time that can generate maximum synergy with the IPO.

“Instead, our final decisions will be made upon a comprehensive assessment on, number one, the market conditions that ensure a proper valuation for the Indian subsidiary and number two, an optimal timing where we can generate maximum synergy with the IPO,” said Kim.

IPO Filing and Revised Timeline

LG Electronics India filed its IPO proposal with the Securities and Exchange Board of India (SEBI) in December last year. The proposal included an offer for sale of 101.8 million shares, representing a 15% stake by the Korean parent. The IPO was initially slated for a May launch.

However, due to continued global uncertainty, particularly surrounding US trade policies, the company is now eyeing a potential post-August launch. Industry observers note that LG may be waiting for market sentiment to stabilise before moving forward.

Delay Reflected in Postponed Leadership Visit

The shift in IPO timing also coincides with changes in the company’s leadership schedule. LG CEO William Cho has postponed his planned visit to India, which was originally scheduled for this week. His visit was to mark the ground-breaking ceremony for LG’s third manufacturing facility at Sri City in Andhra Pradesh.

This postponement underscores the company’s current wait-and-watch approach, balancing long-term investment in India with short-term caution around capital market movements.

India Remains a Core Market for LG Electronics

Despite the delay, LG’s commitment to India remains strong. India is the company’s second-largest market after the United States. LG Electronics India holds leading market positions across several consumer durable categories. It is the market leader in refrigerators, washing machines, and microwave ovens, while ranking second in air conditioners and televisions.

According to Kim, India’s robust market growth and future potential have attracted both domestic and international investor attention.

Rising Interest and Public Speculation

“And following the IPOs of major companies in Korea, we too are aware of the rising public interest on the prospects of listing our Indian subsidiary, which has unique strength in the strong Indian market,” said Kim.

Conclusion 

He acknowledged the ongoing speculation surrounding the IPO timeline but reiterated that any decision will factor in the broader macroeconomic environment. Meanwhile, procedural steps for the India IPO are underway.

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