LG Electronics Postpones India IPO Due to Market Uncertainty

South Korea's LG Electronics has reportedly paused its plan to launch an initial public offering (IPO) for its Indian unit, citing unstable market conditions. As per a Bloomberg report, sources familiar with the matter stated that the company has instructed its advisors to halt preparations temporarily and may reconsider the IPO if market conditions improve. While no final decision has been made, the company is taking a cautious approach amid equity market fluctuations.

Company Response and Current Status

An LG Electronics spokesperson in Seoul mentioned that although the IPO process is still ongoing, they are unable to confirm any specific timeline. The company remains engaged with the IPO procedure, suggesting that the offering has not been entirely shelved, but rather deferred.

Valuation Concerns Prompt Delay

Back in March 2025, Bloomberg had reported that LG India’s valuation might drop from $11.5 billion to $10.5 billion due to a downturn in the Indian equity markets. This potential valuation cut is believed to be one of the key reasons for pausing the IPO plans. The company was initially expected to launch the IPO in May 2025.

Regulatory Approval Already Secured

Despite the delay, LG Electronics has made significant progress in the IPO process. It filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in December 2024. In March 2025, the company received approval from SEBI to proceed with the public listing. LG has also completed roadshows to pitch the IPO to potential investors.

Details of the Public Offering

According to the DRHP, LG Electronics aims to raise around $15 billion through the IPO, with the majority of the issue constituting an Offer for Sale (OFS) from the parent company. Approximately 101.8 million shares—or a 15 percent stake—in LG India will be sold by the parent company. However, the exact size of the public issue has not been disclosed yet.

Lead Managers and Institutional Backing

The IPO is being managed by a consortium of major financial institutions. The list of book-running lead managers includes Morgan Stanley India, JP Morgan India, Axis Capital, BofA Securities India, and Citigroup Global Markets India. These players are instrumental in structuring the IPO and attracting institutional interest.

LG's Market Position in India

LG Electronics is currently the second-largest player in India’s consumer electronics and home appliances market, trailing only behind Samsung India. As stated in the DRHP, LG India's revenue from operations in FY24 was reported at ₹21,352 crore, underlining its substantial presence in the country.

Expansion Plans in India

In addition to its IPO ambitions, LG Electronics is expanding its manufacturing footprint in India. The company is set to begin construction of its third manufacturing facility in Sri City, Andhra Pradesh. This will add to its existing plants in Noida (Uttar Pradesh) and Ranjangaon (Maharashtra), further strengthening its production capabilities in the Indian market.

Outlook

While LG Electronics has not entirely scrapped its IPO plans, the current market volatility has compelled the company to pause and reassess its strategy. The outcome will likely depend on how market conditions evolve in the coming months. Should stability return to the equity markets, the company may revive its public listing plans to capitalize on investor interest.