Lg Electronics Delays India Ipo Amid High Market Volatility

SUMMARY

South Korea's LG Electronics has put a clasp connected nan first nationalist offering (IPO) of its Indian arm, amid nan ongoing volatility successful nan equity markets. The institution has communicated to its advisors that nan nationalist rumor mightiness beryllium postponed, pinch a imaginable resumption limited connected improved marketplace conditions. As of now, nan determination remains tentative, and "it is still nether information and nary last determination has been made". The IPO process continues, yet "the institution cannot remark connected nan timing", according to an LG Electronics charismatic successful Seoul.

The valuation of LG India is nether pressure, perchance dropping from $11.5 cardinal to $10.5 cardinal owed to nan downturn successful section equity markets. Initially expected to beryllium launched successful May, nan IPO was anticipated to make a important effect connected Dalal Street. Earlier this year, LG Electronics had already organised investor roadshows to garner liking successful nan offering. The institution received support from nan Securities and Exchange Board of India (Sebi) successful March, pursuing nan filing of preliminary papers successful December 2024. LG intends to raise astir $15 cardinal done nan IPO, which includes an connection for waste from nan genitor institution intending to offload a 15% liking successful its Indian operations.

According to nan draught reddish herring prospectus, nan genitor institution plans to waste astir 101.8 cardinal shares, translating to a 15% stake. However, nan wide rumor size remains undisclosed. The IPO is managed by lead bookrunners including Morgan Stanley India, JP Morgan India, Axis Capital, BofA Securities India, and Citigroup Global Markets India. LG Electronics' determination to halt nan IPO comes amidst concerns complete imaginable valuation impacts owed to existent marketplace conditions, reflecting nan uncertainties that awesome corporations look successful navigating volatile financial landscapes.

Published on: Apr 23, 2025 3:52 PM IST