LG Electronics reportedly plans to resume IPO for Indian unit

LG Electronics Inc. is reportedly evaluating the possibility of reviving the initial public offering (IPO) of its Indian subsidiary, potentially in the fourth quarter of 2025.

Sources familiar with the matter indicated that the South Korean company plans to refile a preliminary prospectus with updated financial results after the summer.

The IPO process was paused in April 2023 due to market volatility.

LG Electronics said it would assess market conditions before proceeding, as investor concerns over valuation contributed to the delay.

The company has yet to reach a final decision and may further postpone the plan, according to the sources.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ India’s IPO market demonstrates remarkable resilience amid global uncertainties

The temporary pause and planned revival of LG Electronics’ Indian IPO reflects broader patterns in India’s maturing capital markets ecosystem.

India witnessed 80 mainboard IPOs in FY25, raising a total of ₹1,630 billion ($19.6 billion), representing a 163% increase from the ₹619 billion raised in FY24 1.

This exceptional performance occurred despite global economic headwinds, with the NSE outperforming other major global exchanges in terms of funds raised 1.

The broader market has demonstrated resilience with the benchmark NSE Nifty 50 Index recovering approximately 12% from its March low, creating favorable conditions for IPO revivals.

The pattern of companies like LG pausing and then reviving IPO plans based on market conditions highlights the increasingly sophisticated timing strategies employed by issuers in India’s equity markets.

2️⃣ Multinationals increasingly leverage Indian capital markets while expanding local operations

LG Electronics’ dual strategy of pursuing a potential $1.7 billion IPO while simultaneously investing $600 million in a new manufacturing facility demonstrates how global companies are leveraging Indian capital markets to fund regional growth.

The company’s planned factory in Andhra Pradesh will be its third in India, signaling a significant production expansion that aligns with its capital-raising ambitions 2.