South Korean giant LG Electronics is reportedly considering reviving plans to list its Indian unit, as the country's initial public offering (IPO) market seem to have rebound after a few months of lull. The company had first filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) in December 2024 but reportedly delayed the plans in April this year.
Now, according to Bloomberg, the company is planning to refile its preliminary prospectus with updated financial results in September, with the IPO potentially taking place as early as the fourth quarter.
In its first DRHP, the company had stated that its Korean parent would offload 101.8 million shares, representing a 15% stake. Bloomberg reported that the LG Electronics India Ltd IPO was expected to raise as much as $1.7 billion, making it one of India’s larger floats. However, investors pushed back against the parent’s valuation expectations.
During the first-quarter earnings call in April, LG CFO Kim Chang-tae said the Indian unit would be listed only when market conditions ensured proper valuation and maximum synergy.
“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 maximises synergy with the IPO,” Kim told analysts at the time.
IPO Market Revives
This comes as India’s IPO market shows signs of revival after a sluggish start to 2025. This week alone, at least seven offers have hit the street—one on the mainboard and 6 on the SME exchanges. In the coming days, the market is expected to see major listings such as HDB Financial, Hero FinCorp, and NSDL.
Moreover, India’s two main indices, the BSE Sensex and the NSE Nifty 50, also appear to have left behind a prolonged correction seen in the first quarter. Over the past three months, the Sensex has gained over 6.3%, while the Nifty 50 is up 8.23%.
