LG Electronics IPO: ‘Will List When Market Conditions Ensure Proper Valuation,’ Says CFO

LG Electronics India will be listed only when market conditions ensure proper valuation and maximum synergy, according to Kim Chang Tae, Chief Financial Officer (CFO) of the South Korean electronics giant. He made the statement during the company’s first-quarter earnings call last month.

LG Electronics India filed its IPO proposal with SEBI in December 2024, with plans for its Korean parent to offload 101.8 million shares, representing a 15% stake. Although the IPO was initially expected to launch in May, reports now indicate the company is considering a post-August timeline, hoping for greater market stability amid U.S. tariff-related volatility.

“Regarding the final decision on the listing and its timing, given our stable financial structure and the continued business progress of our Indian subsidiary, we will not be pressured to list immediately. Instead, we will make our final decision after a comprehensive assessment of, first, market conditions that ensure a proper valuation for the Indian subsidiary, and second, an optimal timing that maximizes synergy with the IPO,” said CFO Kim Chang Tae.

He added that India’s growth potential has attracted significant interest from domestic and international investors. Following recent IPOs of major Korean companies, LG is also aware of the increasing public interest in the potential listing of its Indian subsidiary, which holds a strong position in the local market.

“We understand there is a lot of speculation about our IPO timeline amid macroeconomic uncertainties. LGE filed the preliminary IPO documents—the Draft Red Herring Prospectus (DRHP)—with the Securities and Exchange Board of India on December 6, 2024. The IPO procedures are still ongoing,” he further noted.

Meanwhile, LG Electronics has reportedly postponed CEO William Cho’s scheduled visit to India last week. His visit was expected to coincide with the groundbreaking ceremony of the company’s third manufacturing facility at Sri City in Andhra Pradesh.

The new plant, part of a Rs 5,001 crore investment, will produce consumer electronics such as refrigerators and TVs. Commercial production is expected to begin in two to three years.

The Andhra Pradesh state government has supported the project with incentives, including a 100% water supply subsidy for 20 years and waivers on stamp duty and registration charges. India is LG's second-largest market globally, after the United States.