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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] Seoul, South Korea – April 23, 2025 — LG Electronics is reportedly reviewing a plan to postpone the IPO of its Indian subsidiary, originally scheduled for next month, due to global market downturns impacting valuation prospects.
According to Bloomberg, while LG has completed a revised draft of its IPO prospectus for the Indian market, the company is now reconsidering the timing of submission. LG’s Indian unit received preliminary approval from the Securities and Exchange Board of India (SEBI) on March 13, triggering a one-year window to finalize the listing.
With an estimated valuation of $13 billion USD, LG’s Indian subsidiary is considered one of the most anticipated IPOs in the region. Projections suggest LG could raise up to $1.5 billion USD through the offering — a figure surpassing LG Electronics’ current market capitalization in South Korea (approx. $8.5 billion USD).
However, recent declines across global equity markets, exacerbated by growing geopolitical uncertainties and weakened investor sentiment, have prompted LG to consider deferring the listing. Internal discussions reportedly favor waiting for a more favorable environment where the company’s valuation can be accurately reflected.
Given the steady growth in both revenue and profit from LG's operations in India, the company is not under pressure to list immediately. A potential delay would allow LG to incorporate more recent financial data, potentially showcasing stronger results and improving its standing with investors during roadshows.
No final decision has been announced, and LG Electronics has not officially commented on the matter.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
