LG Electronics India pauses IPO, will look at strategic timing

The final decision on the listing will be made based on market conditions and other relevant factors, a spokesperson for LG Electronics India said

LG Electronics India, the Indian arm of South Korean consumer durable and electronics major, has decided to pause plans for its proposed IPO due to volatility in market conditions. The company said it will look at a more “strategic timing” to launch the IPO. It had got approval to proceed with a public listing from Securities and Exchange Board of India (SEBI) last month.

“The procedures for LGEIL’s IPO are currently underway. The final decision on the listing will be made based on market conditions and other relevant factors. No definite plans have been confirmed at this time. We are closely monitoring the market and will consider a strategic timing that ensures a proper valuation of the company,” a spokesperson for LG Electronics India said on Wednesday.

IPO features

The India unit of the South Korean consumer durable major had filed its preliminary papers with SEBI in December last year. According to its draft red herring prospectus, the IPO will be structured entirely as an offer for sale of up to 10.18 crore equity shares by its parent company, amounting to a 15 per cent stake. While the company has not disclosed the total issue size, analysts had pegged the IPO size is ₹15,000 crore. Being an OFS, the funds raised will go to the parent company.

LG Corp’s Chairman & CEO Kwang Mo Koo, along with the top brass, visited India in February. The company had also begun doing investor roadshows.

In its draft prospectus, the consumer appliance and electronics major had said that the public listing will enhance its visibility and brand image, provide liquidity, and create a public market for the equity shares in the country.

In an interview with businessline, Hong Ju Jeon, MD, LG Electronics India in March had said India continues to be one of the most important markets for the company and that he is optimistic about the long-term potential of the country.

LG Electronics India’s revenue from operations in FY24 stood at ₹21,352 crore up 7.5 per cent. Net profit grew 12.4 per cent to ₹1,511 crore for the period. 

Published on April 23, 2025