LG Electronics' Rs 15,000-Crore India IPO Launch Delayed As Market Swings Weigh On Valuation
The stake sale, which could originally have valued LG India at around $12.5 billion, can soften as markets see prolonged correction, a person privy to the development said.
The launch of LG Electronics India's Rs 15,000-crore market debut has been delayed, two people aware of the development told NDTV Profit. The company was originally eyeing to open the initial public offering in the first week of May 2025.
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, one of the persons cited above said.
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, the second person said.
When asked about the delay in launching the offer, an LG India spokesperson said, "We are closely monitoring the market and will consider a strategic timing that ensures a proper valuation of the company."
Bloomberg News was the first to report that South Korea's electronics giant has paused work on its India unit IPO.
The LG spokesperson added that while procedures for the India IPO are currently underway, the final decision on the listing will be made based on market conditions and other relevant factors.
"No definitive plans have been confirmed at this time," they said.
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.
ALSO READ
LG Electronics India IPO: How Korean Appliances Major Stacks Up Against Indian Listed Peers
LG Electronics India FY24 Highlights (YoY)
Revenue rose 7% to Rs 21,352 crore versus Rs 19,865 crore.
Ebitda increased 17% to Rs 2,225 crore versus Rs 1,899 crore.
Margin expanded 85 basis points to 10.42% versus 9.56%.
Net profit climbed 12% to Rs 1,511 crore versus Rs 1,345 crore
While the company made a profit of Rs 1,511 crore in the fiscal 2024, it paid a much more liberal dividend of Rs 2,093 crore at Rs 185 per share.
In the first quarter of fiscal 2025, the company reported a revenue of Rs 6,409 crore and a profit of Rs 680 crore. Operating income stood at Rs 958 crore and its margin against the topline came up to 14.94%.
As of June 30, 2025, the company had a cash balance of Rs 3,606 crore.
