LG Electronics postpones IPO of Indian subsidiary amid global market volatility

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LG Electronics postpones IPO of Indian subsidiary amid global market volatility

Published: 24 Apr. 2025, 10:38 Updated: 24 Apr. 2025, 14:37

Audio report: written by reporters, read by AI

LG Electronics' headquarters in Yeouido, western Seoul, on April 7. [YONHAP]

LG Electronics decided to take a more cautious approach with the initial public offering (IPO) of its Indian subsidiary, to ensure it receives a fair market valuation amid growing volatility in global financial markets.

LG Electronics is currently reviewing the final timing of the IPO for its Indian unit, according to industry sources on Wednesday. Although the company received preliminary approval for the listing from the Securities and Exchange Board of India last month, it has temporarily postponed the final steps, including the submission of required documents.

Industry observers had previously expected the IPO of LG Electronics in India to occur as early as May, but the timeline is now likely to be pushed back.

“The listing process for the Indian subsidiary is ongoing,” said an official from LG Electronics. “The final decision on whether to proceed with the IPO will depend on market conditions, and nothing has been confirmed yet.”

The company denied any suggestion that the IPO had been scrapped.

“We are closely monitoring the market and reviewing the most strategic timing to ensure the company is properly valued,” the LG Electronics official said.

Analysts believe that recent changes in U.S. trade policy under President Donald Trump have contributed to the shift. With heightened volatility in global markets, LG Electronics is seen as needing to reassess the timing of the IPO.

LG Group Chairman Koo Kwang-mo, right, talks to researchers at an LG Electronics factory in India on March 4. [YONHAP]

Bloomberg also reported that LG Electronics delayed the IPO due to a downturn in India’s stock market. Citing unnamed sources, Bloomberg noted that the company’s Indian subsidiary, initially expected to be valued at $15 billion, may now be worth between $10.5 billion and $11.5 billion.

India is a key production base and strategic market for LG Electronics. The company’s Indian subsidiary has maintained the No. 1 position in the country’s home appliances and consumer electronics segments for over a decade.

LG Group Chairman Koo Kwang-mo also selected India as his first overseas destination this year, underscoring the market’s importance.

“The coming years will be critical for determining how we differentiate ourselves in the Indian market and outpace the competition,” Koo said during his visit.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY LEE GA-RAM [[email protected]]