Day: April 23, 2025

South Korea’s LG Electronics has halted work on the initial public offering (IPO) of its Indian arm amid ongoing volatility in the equity markets, Bloomberg reported on Wednesday citing people familiar with the matter.  

According to the report, the company has informed advisors that it may postpone the public issue and may resume if the market conditions improve. However, it is still under consideration and no final decision has been made. 

The IPO process is still underway but the company cannot comment on the timing, the report cited an LG Electronics official in Seoul as saying.  

In March, Bloomberg reported that LG India’s valuation could decline from $11.5 billion to $10.5 billion after the decline in the local equity markets. The LG Electronics IPO was expected to hit Dalal Street in May this year. 

The company has already hosted roadshows to attract investors for the IPO. It received approval from the markets regulator Securities and Exchange Board of India (Sebi) in March this year. It filed preliminary papers with Sebi in December 2024. The company aims to raise around $15 billion through the public issue, which includes an offer for sale (OFS) from its parent company. LG Electronics plans to offload a 15 per cent stake in its Indian operations. 

According to the draft red herring prospectus (DRHP), the parent company will sell around 101.8 million shares, amounting to a 15 per cent stake. However, the company did not disclose the total issue size. Morgan Stanley India, JP Morgan India, Axis Capital, BofA Securities India and Citigroup Global Markets India are the book-running lead managers for the IPO. 

LG Electronics is the country’s largest home appliances and consumer electronics player after Samsung India Electronics. As per DRHP, LG Electronics’ revenue from operations in FY24 stood at ₹21,352 crore.  

In addition, LG Electronics is set to begin the construction of its third consumer electronics manufacturing unit in India. It will be located in Sri City, Andhra Pradesh. Currently, it operates two manufacturing facilities in the country including one in Noida and another in Ranjangaon, Maharashtra. 

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Shares of Bharti Hexacom gained 3.3 per cent in trade, registering an all time high at ₹1,695.45 on the BSE. At 11:52 AM, Bharti Hexacom shares were trading 2.16 per cent higher at ₹1,675.15 per share on the BSE. In comparison, the BSE Sensex was up 0.28 per cent at 79,817.14. The market capitalisation of the company stood at ₹83,757.5 crore. The 52-week high of the stock was at ₹1,695.45 per share and 52-week low of the stock was at ₹854.05 per share.However, Bharti Airtel stock was down 0.11 per cent at ₹1,850 per share on BSE. 

Why did Bharti Hexacom shares hit all time high today?

The stock was in demand after the company along with Bharti Airtel inked agreements with Adani Data Networks Limited, a subsidiary of Adani Enterprises to acquire rights to use 400 MHz of spectrum. 

As per the agreements, Bharti Airtel and its subsidiary, Bharti Hexacom will acquire rights to use 400 MHz of spectrum in the 26 GHz band in Gujarat (100 MHz), Mumbai (100 MHz), Andhra Pradesh (50 MHz), Rajasthan (50 MHz), Karnataka (50 MHz) and Tamil Nadu (50 MHz). 

“The closing of the transaction is subject to satisfaction of the standard conditions (including conditions stated in the Spectrum Trading Guidelines) and statutory approvals,” the filing read. 

That apart, in other developments, Bharti Airtel gained the most number of subscribers in January, with 1.65 million new wireless users, while Reliance Jio added 0.68 million users, data from the Telecom Regulatory Authority of India (Trai) showed on Monday. 

Airtel’s mobile wireless market share continued to inch up in January, at 33.61 per cent. The overall number of mobile phone connections in India increased by 0.55 per cent in January. The high growth rate was due to Trai changing its subscriber reporting norms from January onwards, which now require 5G fixed wireless access (FWA) subscriptions to be counted as wireless subscribers, as opposed to wireline subscribers, as had been the case so far.

About Bharti Airtel 

Headquartered in India, Airtel is a global communications solutions provider with over 550 million customers in 15 countries across India and Africa. The company also has its presence in Bangladesh and Sri Lanka through its associate entities. The company ranks amongst the top three mobile operators globally and its networks cover over two billion people. 

About Bharti Hexacom

Bharti Hexacom is a communications solutions provider offering consumer mobile services, fixed-line telephone and broadband services to customers in the Rajasthan and the North East telecommunication circles in India, which comprises the states of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura. It offers services under the brand ‘Airtel’. Airtel is a global communications solutions provider with over 550 million customers in 17 countries across South Asia and Africa

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Shares of Adani Group-based energy firm – Adani Power have gained 13.6 per cent thus far in April; and the stock soared over 26 per cent from its low of ₹462 hit on April 7, to the day’s high at ₹584 on Wednesday. The stock traded with a gain of 0.8 per cent at ₹577, while the NSE benchmark Nifty 50 index rose 0.4 per cent at 24,250 levels. The recent gains in the stock have been attributed to growing investor interest in the power sector owing to rising demand for electricity this summer. That apart, analysts are optimistic that the company will be able to deliver steady earnings growth in the March quarter. Adani Power is scheduled to announce its Q4FY25 results on April 30, 2025.

Technically, Adani Power stock was seen testing resistance at its 200-day Daily Moving Average (200-DMA) for the third straight day on Wednesday. The stock last closed above this key long-term moving average on October 15, 2024. 

Further, stock is also seen within striking distance of the weekly super trend line resistance which stands at ₹610 – a key medium term indicator. Against this background, here’s what your trading strategy should be at the counter.

Adani Power

Current Price: ₹577 Upside Potential: 30% Support: ₹549; ₹530; ₹515 Resistance: ₹610; ₹655; ₹685 Adani Power daily chart shows that the near-term bias for the stock is likely to remain positive as long as the stock holds above ₹549 levels. Below which, strong support for the stock can be anticipated at ₹530 and ₹515 levels.

Key momentum oscillators on the weekly scale are favourably placed; hence any dip at the counter could be a buying opportunity in the stock. On the upside, the stock needs to conquer the hurdle at ₹610 for likely further gains. The long-term chart suggests that the stock can potentially soar towards ₹750 levels. On its way up, the stock may face interim resistance around ₹655 and ₹685 levels. 

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