LG Electronics Pauses IPO Plans In India Amid Market Instability: Report

The company has reportedly informed its advisors about potentially deferring the public issue. While discussions around the IPO are ongoing, no definitive timeline has been confirmed, the report noted

LG Electronics filed its draft red herring prospectus (DRHP) with Sebi in December 2024.

Source : LG Electronics

South Korean conglomerate LG Electronics has reportedly paused its plans for launching an initial public offering (IPO) for its Indian subsidiary, citing concerns over fluctuating market conditions.

Citing sources in the know, Bloomberg reported that the company has informed its advisors about potentially deferring the public issue. While discussions around the IPO are ongoing, no definitive timeline has been confirmed.

An official from LG Electronics in Seoul told Bloomberg that while the IPO process is progressing, “the company cannot comment on the timing.” The offering was earlier anticipated to hit Indian markets in May 2025, but the current market turbulence has cast doubt over that timeline.

Valuation Concerns and Regulatory Clearance

In a prior report from March, Bloomberg highlighted that LG India’s projected valuation might slip from $11.5 billion to $10.5 billion due to a broader decline in Indian equity markets. Despite this, the company had been actively preparing for the IPO, having conducted roadshows to pitch the offering to prospective investors.

The public issue received approval from the Securities and Exchange Board of India (Sebi) in March 2025. LG Electronics filed its draft red herring prospectus (DRHP) with Sebi in December 2024. Through the IPO, the company aims to raise around $15 billion, primarily via an offer for sale (OFS) from its South Korean parent, which is expected to divest a 15 per cent stake in the Indian business.

The DRHP details that approximately 101.8 million shares will be offloaded as part of the OFS. However, the total size of the offering remains undisclosed. The IPO is being managed by a consortium of investment banks, including Morgan Stanley India, JP Morgan India, Axis Capital, BofA Securities India, and Citigroup Global Markets India.

Expansion Plans Continue Despite IPO Uncertainty

Even as the IPO timeline remains uncertain, LG Electronics is moving forward with its expansion in India. The company is preparing to establish a third manufacturing plant in Sri City, Andhra Pradesh. It currently runs two operational units in Noida and Ranjangaon, Maharashtra.

According to the DRHP, LG Electronics generated Rs 21,352 crore in revenue from operations in FY24. The company holds a dominant position in India's consumer electronics market, ranking second only to Samsung India Electronics.