LG Electronics, a big company from South Korea, has decided to postpone the initial public offering (IPO) for its Indian branch. The IPO was originally set for the second week of May, but now it has been pushed back by at least three months.
This delay is because the stock market in India is not very stable right now. If things are still not looking good in August, they might postpone it again.
The IPO was expected to raise around Rs 15,000 crore (which is a lot of money), but not many investors seem excited about it. The market is facing challenges, including new rules from the Trump administration and recent news about a terror attack in Jammu & Kashmir, which add to the uncertainty.
An LG spokesperson mentioned that the final decision about the IPO will depend on how the market is doing. They are currently in the process of getting ready for the IPO and will choose a good time to ensure they get a fair value for the company.
On December 6, 2024, LG Electronics India Ltd submitted early paperwork to the Securities and Exchange Board of India (SEBI) for the IPO. The parent company will sell 10.18 crore shares, which represents a 15% stake. This IPO will only be an “offer for sale” (OFS), meaning LG Electronics India itself won’t get any money from it. Instead, the money will go to the parent company.
LG Electronics India is known for its home appliances and electronics. They sell their products to customers directly (B2C) and to businesses (B2B) both in India and around the world. They also offer services like installation, repair, and maintenance for all their products. In the last financial year, LG Electronics India’s sales were around Rs 64,087.97 crore.
LG Electronics India Delays IPO Due to Market Instability
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