Market turmoil casts dark clouds over LG Electronics India, Ather IPOs

Both companies had planned to launch their offerings this month

The brutal market selloff triggered by US recession fears has cast doubt over the initial public offerings (IPOs) of LG Electronics India and Ather Energy — both of which were slated to debut later this month.

 

Sources said both companies are now considering a delay following a swift shift in market sentiment amid rising global trade tensions.

 

Home appliance major LG’s IPO is estimated at ₹15,000 crore, making it India’s fifth-largest, while Ather, an electric scooter maker, has pegged its offer at ₹4,000 crore.

 

Both firms are also weighing scale-backs to issue sizes and valuations to better reflect current market conditions, according to people in the know. However, neither company has formally confirmed these figures.

 

“Following the market’s rebound from its March lows, LG and Ather had scheduled IPOs for the third or fourth week of April, locking in tentative dates and booking hotel venues. But the recent turmoil has thrown those plans into question. Given the size and visibility of these issues, they’d rather enter the market when sentiment is more conducive,” said a person with direct knowledge of the discussions.

 

“We do not comment on market speculation or rumours,” said a spokesperson for LG India. A query sent to Ather remained unanswered until the time of going to press.

 

LG received Sebi’s approval for an IPO last month, while Ather got the green light in December.

 

Besides LG and Ather, other companies readying IPOs include Smartworks, Brigade Hotel Ventures, Aegis Vopak Terminals, National Securities Depository, IndiQube, and Indogulf Cropsciences.

 

At the start of March, the benchmark Nifty fell to its lowest level since June 2024, shedding over 16 per cent from its high. As a result, no mainboard IPOs were launched that month — the first such dry spell since May 2023.

 

A rebound of 8 per cent from those lows briefly revived equity capital market activity, triggering share sales by several listed companies. If April ends without a single IPO, it would be the most prolonged lull since February 2023.

 

This follows a deep market slide: since their peak in September, the Nifty is down 15 per cent, while the Nifty Smallcap 100 and Nifty Midcap 100 have each lost about 20 per cent.

 

“Last year was a good run for IPOs, but the reset in valuations is forcing companies to rethink their targets. Many promoters are still adjusting to that reality,” said another banker.

 

While LG doesn’t have a direct listed peer, shares of companies in related sectors — such as Havells India and Voltas — have dropped around 25 per cent over the past six months. Meanwhile, Ather’s rival Ola Electric Mobility, which floated a ₹6,146 crore IPO in August, is now trading 33 per cent below its issue price.

 

In 2024, a record ₹1.6 trillion was raised through IPOs by 91 companies. In contrast, just nine companies have raised ₹15,723 crore so far this year.