IPO News: What happened due to which LG Electronics postponed the IPO of its unit in India

South Korean giant LG Electronics has put on hold the Initial Public Offering (IPO) of its unit in India for now. According to a Bloomberg report, the company has asked its advisors to postpone the IPO plan due to the current market volatility.

But why did it do so- The recent decline in the Indian stock market has put pressure on the valuation of the LG India unit. While the valuation was earlier expected to be up to $15 billion, it may now come down to $10.5–$11.5 billion. The company has said that the IPO process is ongoing, but no comment can be made on the timing.

The IPO could have been launched in May 2025, but now it has been postponed. The company had also conducted roadshows initially to talk to potential investors. Impact of market volatility- There has been sharp volatility in the Sensex and Nifty in recent weeks. Geopolitical tensions, weakness in the rupee, and rise in crude prices have changed investor sentiment. In such an environment, it is difficult for a big IPO to get attractive valuations. LG Electronics – Presence in India: LG is a major brand in consumer electronics and home appliances in India. The company has a strong brand identity, supply chain and distribution network in India. The purpose of the IPO was to raise capital for expansion and investment in India. This strategic move by LG Electronics makes it clear that companies are becoming cautious in the market uncertainty. Until the market shows stability, many other multinational companies may also postpone their IPO plans. LG Electronics is a South Korean multinational company that manufactures electronics and home appliances. This company is famous all over the world and has a big market in India too. What things does LG Electronics manufacture- TVs: Smart TV, OLED TV, 4K UHD, LED TV etc. Refrigerators, single door, double door, side-by-side fridge, washing machines, top load, front load, semi-automatic, air conditioners, split AC, window AC, inverter AC. Mobile Phones (Smartphones) (Note: LG shut down the mobile business in 2021) Kitchen Appliances - Microwaves, Dishwashers, Water Purifiers, Computers & IT Products, Cleaners, Laptops, Storage Devices, B2B Solutions, Digital Signage, Solar Panels, Air Solutions LG Key Features: Founded in: 1958 (South Korea) Presence in India: Since 1997 Headquarters: Seoul, South Korea Tagline: Life's Good Manufacturing units in India: Noida, Pune, Ranjangaon, etc

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