IPO Update: LG Electronics halts India unit IPO plans: Report

IPO Update: LG Electronics has temporarily halted its initial public offering plans for its Indian subsidiary due to instability in the local stock markets, as reported by Bloomberg News on Wednesday, citing knowledgeable sources.

Earlier this year, the South Korean firm had initiated roadshows to connect with potential investors regarding the IPO, but it appears that the Indian division might be looking at a lower valuation than initially anticipated, according to Bloomberg News.

As the domestic stock markets have slumped, the valuation of LG Electronics India could have decreased to a range of $10.5 billion to $11.5 billion, in contrast to previous projections that reached up to $15 billion, as per news report. LG Electronics has informed its advisers that it may consider resuming IPO preparations if the market conditions improve, according to the report.

The fluctuating tariffs imposed by US President Donald Trump have created trade uncertainties and unsettled markets worldwide, with India's benchmark Nifty 50 index still approximately 8% below its all-time high achieved in September 2024.

Valuation concerns

As per Reuters news report, LG Electronics said that it is currently in the process of preparing for its IPO. The ultimate decision regarding the listing will depend on market conditions and other significant factors. The company is actively observing the market and will select a strategic timing to ensure an appropriate valuation of the business.

This reported pause in plans coincides with a period of equity market volatility in India, which has prompted the homegrown e-scooter manufacturer Ather Energy to reduce its fresh share sale size by 15%, resulting in a 44% decrease in its target valuation.

LG Electronics offers home appliances like refrigerators and washing machines in India, competing against Whirlpool and Samsung in the local market, which is projected to grow at a rate of 12% per year until 2029, as per the consultancy firm RedSeer.

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