President Cho Joo-wan inspects LG’s home appliance production line in India in 2023 (Image provided by LG Electronics)
SEOUL, April 23 (Korea Bizwire) — LG Electronics is taking a cautious approach to the initial public offering (IPO) of its Indian subsidiary, pushing back earlier expectations of a May 2025 listing in light of ongoing global market instability.
According to industry sources on April 23, LG Electronics recently completed a revised version of its Updated Draft Red Herring Prospectus (UDRHP)—a supplementary filing addressing feedback from the Securities and Exchange Board of India (SEBI). The company is now weighing the optimal timing for its submission, signaling a deliberate pause in its IPO timeline.
While LG Electronics received preliminary approval for the listing from SEBI in March 2025, Indian capital market regulations stipulate that the company must complete the IPO process within one year of that approval.
However, the company appears to be prioritizing a favorable market window over speed, especially amid heightened investor caution following recent shifts in global trade policy and broader financial market volatility.
Bloomberg reported that LG Electronics may delay the IPO in response to these fluctuations, citing unnamed sources familiar with the matter.
LG Group’s headquarters in Seoul. (Image courtesy of Yonhap)
The Indian unit of LG Electronics is the country’s leading home appliance brand and widely regarded as a major upcoming listing. Previous estimates from foreign media valued the subsidiary at around $13 billion, with expectations of raising up to $1.5 billion through the offering.
Internally, the company is reportedly considering whether the timing will allow it to maximize its valuation. With most of LG’s product lines holding the top market share in India and the subsidiary showing steady revenue and profit growth in recent years, the company is under no urgent pressure to go public, analysts say.
The financial disclosures included in the current UDRHP reflect performance up to the end of 2024. Industry experts suggest that LG may benefit from showcasing stronger future financials in investor roadshows if market conditions improve, potentially enhancing the offering’s appeal.
An LG Electronics spokesperson stated, “The final decision on the IPO will be made based on market conditions. Nothing has been confirmed at this stage.”
Market watchers note that while investor sentiment has temporarily weakened, the trend is likely to be short-lived. “Given the current uncertainty in global equities, LG’s strategy to prioritize value over speed is a prudent move,” one industry insider said.
Kevin Lee (kevinlee@koreabizwire.com)
