Big Update On LG Electronics IPO! Korean Tech Giant Set To Launch Public Offering By This Month – Details

South Korean electronics major LG Electronics is exploring the possibility of reviving the long-awaited initial public offering (IPO) of its Indian subsidiary, with a potential launch as early as September, reported Bloomberg, citing sources aware of the development.

The Indian arm of the Seoul-based company is understood to be refiling the updated version of its draft red herring prospectus (DRHP) later this year, incorporating the latest financial figures. If market conditions improve, the IPO could be rolled out as soon as the fourth quarter, sources who have requested anonymity told Bloomberg.

Earlier, the same news agency had reported that LG Electronics had put its India listing plans on hold in April due to unfavourable stock market conditions. At the time, the company said it would reassess its IPO roadmap depending on market sentiment.

“Deliberations are still ongoing, and there remains a possibility that the public offering could be postponed again,” sources added. LG Electronics declined to comment on the matter.

Also Read: LG Electronics India IPO: Rs 15,000 Crore Mega Issue - Company Files Papers With SEBI | Republic World

It may be recalled that last year, LG Electronics Inc. had announced plans to list its Indian subsidiary, LG Electronics India, by filing draft papers with the market regulator for an initial public offering (IPO). The consumer durables giant was planning to raise approximately $1.8 billion (Rs 15,237 crore) through the offering.

Just like the Hyundai IPO, this too was a pure offer for sale (OFS) by the parent company. According to the draft red herring prospectus (DRHP) filed earlier, the OFS included 101 million shares.

The IPO was expected to rank among India's top five largest public issues, alongside Hyundai Motor India, LIC, Paytm, and Coal India. However, investors had raised concerns over the valuation targets set by the parent company, as stated by sources to Bloomberg.

Reaffirming its long-term commitment to the Indian market, LG Electronics India last month announced plans to invest $600 million over the next four years in a new manufacturing facility in Andhra Pradesh, which will be its third plant in the country.

Meanwhile, India’s equity markets have shown signs of revival after a sluggish start to the year. The benchmark NSE Nifty 50 Index surged nearly 12% from its March low, buoying investor sentiment.