Korea's LG Electronics Will Not Be Pressured To List India Unit Immediately, Says CFO
The IPO was earlier said to have been delayed, and a spokesperson had said that no definitive plans had been confirmed at that time.
South Korea's LG Electronics Inc. is under no pressure to immediately go ahead with its India unit's Rs 15,000-crore market debut.
"Given our stable financial structure and the continued business progress achieved by the Indian subsidiary, we will not be pressured to list immediately," Chief Financial Officer Kim Chang Tae said during the company's first quarter analyst call on April 24.
Instead, the final decisions will be made upon two factors — India's market conditions to ensure a proper valuation, and an "optimal timing" to generate maximum synergy with the IPO, he added.
The IPO was earlier said to have been delayed, and a spokesperson had said that no definitive plans had been confirmed at that time.
The appliance maker's South Korean parent, which intends to sell up to 10.2 crore shares through the IPO, is concerned about justifying high valuations in India's currently volatile stock market, people aware of the matter had told NDTV Profit.
The stake sale, which could originally have valued LG India at around $12.5 billion, can soften by a certain degree as stock markets remain in prolonged correction, another person had said.
"The growth potential held by India has recently attracted many interest from investors home and abroad," Kim Chang 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."
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LG Electronics' Rs 15,000-Crore India IPO Launch Delayed As Market Swings Weigh On Valuation
LG Electronics India had received the market regulator's nod in March for launching its IPO, where the Korean chaebol intended to offload 15% stake in a pure offer for sale.
The company, which is the country's second largest electronics major, had started roadshows for the IPO by February.
Its listed peers include Havells India Ltd., Voltas Ltd., Whirlpool of India Ltd. and Blue Star Ltd.
A successful debut will make LG India the second South Korean company to tap the Indian stock market, following the listing of Hyundai Motors India Ltd. in October last year.
