LG Electronics India has deferred its much-awaited listing owing to stock market volatility, reported PTI, citing sources.
Previously, in the second week of May, the South Korean giant Chaebol planned the IPO and subsequent listing of LG Electronics India on the bourse. However, it has been postponed for at least a quarter.
However, the electronics firm may delay the listing even further if LG Electronics do not find the market sentiments favourable even in August.
According to the quoted sources by the PTI, the IPO, which was expected to be around a valuation of Rs 15,000 crore in some news reports, didn’t attract a very warm reception from the investors.
The volatility in markets persisted as the new tariff regulation by the Trump administration kicked in. Plus, the terror attack at Pahalgam in Jammu & Kashmir is also dampening the sentiments.
A final decision on the listing will be taken based on the market conditions, quoted PTI an LG Electronics spokesperson.
“The procedures for LGEIL’s IPO are currently underway. The final decision on the listing will be made based on market conditions and other relevant factors. No definite 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,” he said.
LG Electronics India filed preliminary papers with the markets regulator, SEBI, for an IPO on December 6, 2024.
It was mentioned that the parent company would sell over 10.18 crore shares, equalling a stake of 15%.
The issue is entirely an offer for sale (OFS) in which the promoter, LG Electronics Inc., would offload its shares. The IPO doesn’t have a fresh issue component, according to the draft red herring prospectus (DRHP). This means the raised money will not go to the company based in India, but to the South Korean firm LG Electronics Inc.