🧠 Food for thought

Implications, context, and why it matters.

Market timing pressures force valuation resets even for established brands

• LG’s IPO journey illustrates how market volatility can significantly impact even blue-chip valuations, with the company’s expected valuation dropping from $15 billion to $10.5-11.5 billion due to global headwinds and trade disputes1.
• The timing challenge is compounded by LG India’s slowing growth momentum, with revenue growth decelerating from 17% in FY23 to just 7.5% in FY24 despite maintaining strong profitability margins of 10.4%2.
• This valuation reset demonstrates how even market leaders with 13 consecutive years of dominance in major appliances must navigate investor sentiment and macroeconomic conditions when accessing public markets3.
• The delay from the original April-May timeline to October reflects the careful balance companies must strike between capitalizing on market opportunities and avoiding unfavorable pricing conditions1.

Cross-border listings emerge as strategic solution for addressing regional valuation discounts

• LG’s India IPO represents part of a broader global trend, with cross-border IPO activity reaching a 20-year high of 14% of total deals in H1 2025, as companies seek more favorable valuations in different markets4.
• The “Korea discount” phenomenon affecting South Korean firms has prompted both LG and Hyundai to use India listings as a mechanism to enhance shareholder value and diversify their investor base beyond their home market12.
• This strategy allows LG Electronics Inc. to directly monetize its investment in the Indian subsidiary while potentially achieving higher valuations than might be possible in Korea’s domestic market3.
• The timing coincides with India’s robust IPO market, which has already seen nearly 30 offerings raising over ₹60,000 crore in 2025, providing a receptive environment for large international listings1.