By Aditya Kalra and Heekyong Yang
NEW DELHI/SEOUL (Reuters) -South Korea’s LG Electronics has delayed its Indian unit’s IPO plans due to market volatility and is now targeting launching the offering in the second or third quarter of fiscal year 2025-2026, instead of May, a source with direct knowledge said on Wednesday.
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 roughly 8% off its record high hit in September 2024.
LG Electronics’ India unit filed for an initial public offering in December, and had targeted to launch the offering in May to cash in on the country’s growing demand for consumer durables.
That timeline is now delayed, said the source, who declined to be named as the discussions are private.
“The timeline is (now) being shifted. The tentative (target) now is second quarter of financial year 2026, and can even be pushed to the third quarter,” said the source.
“The timeline is on pause given the market sentiment because of Trump and tariffs,” the person added, saying roadshows and investor engagements for the IPO would continue.
In a statement, LG said procedures for its India IPO were currently underway and “the final decision on the listing will be made based on market conditions and other relevant factors.”
“No definitive plans have been confirmed at this time. We are closely monitoring the market and will consider a strategic timing that ensures a proper valuation of the company,” it added.
Bloomberg News, which was the first to report that the company has paused work on the IPO of its Indian unit, said that the local unit’s valuation could have dipped to between $10.5 billion and $11.5 billion, versus earlier expectations for as much as $15 billion.
This week, Indian e-scooter maker Ather Energy cut its fresh share sale size in its IPO 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 Aditya Kalra in New Delhi, Hritam Mukherjee in Bengaluru and Heekyong Yang in Seoul; Editing by Nivedita Bhattacharjee and Mrigank Dhaniwala)
