(Reuters) -LG Electronics has paused work on the initial public offering of its Indian unit [LGEL.NS] amid volatility in the local stock markets, Bloomberg News reported on Wednesday, citing people familiar with the matter.
The South Korean company had started roadshows earlier this year to meet potential investors in the IPO, but the Indian unit might have faced a lower valuation than previously expected, Bloomberg News reported.
Following a downturn in domestic stock markets, LG Electronics India’s valuation could have dipped to between $10.5 billion and $11.5 billion, versus earlier expectations for as much as $15 billion, the report said.
U.S. President Donald Trump’s on-again-off-again tariffs have sparked trade uncertainty and roiled markets globally, with India’s benchmark Nifty 50 index still roughly 8% off its record high hit in September 2024.
LG Electronics has told its advisers it may decide to resume work on the IPO if market conditions improve, the report said.
“The procedures for the IPO are currently underway. The final decision on the listing will be made based on market conditions and other relevant factors,” LG Electronics said in a statement.
“We are closely monitoring the market and will consider a strategic timing that ensures a proper valuation of the company,” the company said.
The reported pause of plans comes at a time when equity market volatility in India has led homegrown e-scooter maker Ather Energy [ATHR.NS] to cut its fresh share sale size by 15%, slashing its target valuation by 44%.
LG Electronics sells consumer appliances such as refrigerators and washing machines in India and competes with Whirlpool and Samsung in the domestic market, expected to grow 12% annually till 2029, according to consultancy firm RedSeer.
(Reporting by Hritam Mukherjee in Bengaluru and Heekyong Yang in Seoul; Editing by Nivedita Bhattacharjee and Mrigank Dhaniwala)
