The much-anticipated Rs 15,000-crore initial public offering (IPO) of LG Electronics India will not be rushed to market despite earlier plans, as the Korean parent company takes a measured approach amid current market conditions.
ET reported LG Electronics Chief Financial Officer Changtae Kim as saying that the company's "stable financial structure" and the "continued business progress" of its Indian arm allows them to take a deliberate approach to the listing. As per the report, while speaking during the company's first-quarter earnings call on Friday, Kim said, "We will not be pressured to list immediately."
Explaining that final decisions would hinge on "a comprehensive assessment" of market conditions "that ensure a proper valuation" and "optimal timing" to "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,” he added.
LG Electronics India had submitted its initial IPO proposal to market regulator Sebi in December 2024, with plans for the Korean parent to divest 101.8 million shares, representing a 15 percent stake. Although originally targeting a May launch, industry sources reportedly LG is now considering a post-August timeframe, anticipating that impacts from US tariff-related market fluctuations might stabilize by then.
In what appears to be a related development, company's chief executive William Cho has postponed his scheduled visit to India this week. The trip was expected to coincide with the groundbreaking ceremony for the company's third manufacturing facility at Sri City in Andhra Pradesh on Thursday.
India represents LG's second-largest market globally, behind only the United States of America (USA). The electronics giant has established market leadership in several major appliance categories like refrigerators, washing machines, and microwave ovens, while maintaining a strong second position in air conditioners and remaining among the top two players in the television segment.
Kim acknowledged the growing interest in the company's IPO prospects, noting that India's growth potential has attracted interest from investors home and abroad. He added, "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. We understand there is a lot of speculation on our timeline for the IPO amidst uncertainties in the macroeconomic landscape."
Despite speculation about timelines amid uncertainties in the macroeconomic landscape, he confirmed that procedural work for the India IPO continues to move forward.
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