LG Electronics India to postpone its IPO: report

South Korean home appliances giant LG Electronics has decided to postpone its Indian subsidiary’s initial public offering (IPO), Bloomberg reported.

The development stems from concerns over US President Donald Trump’s now-paused tariffs, which is leading to uncertainty in the equity markets.

Initially planned for May, LG Electronics now plans to launch the IPO in the second or third quarter of the current fiscal, depending on market conditions, according to Bloomberg.

The company had received approval from the Securities and Exchange Board of India (Sebi) in mid-March.

However, the company is yet to submit its final IPO prospectus and schedule book-building sessions to decide the IPO price to list the Indian unit within a year after obtaining preliminary approval, a person familiar with the matter told Bloomberg .

LG Electronics’ decision reflects concerns over potential valuation declines amid market apprehensions. The subsidiary’s valuation is expected to drop from around $15 billion to between $10.5 and $11.5 billion.

The company’s India unit is valued at $13 billion, making it bigger than its Korean parent’s total market capitalization of 11.67 trillion won ($8.2 billion) in Seoul.

It plans to raise $1.5 billion by offering a 15% stake in the local unit through this IPO.

In India, LG Electronics posted its largest-ever sales of 3.79 trillion won last year, up 14.8% from the previous year.

Its net profit spiked 43.4% year-on-year to 331.8 billion won.

If it floats an IPO, it will become the second Korean company to enter the Indian stock market.

Last October, Hyundai Motor India raised $3.3 billion in India’s largest IPO.