LG Electronics Inc.’s India unit may get a lower valuation than previously expected in its initial public offering, according to people familiar with the development, after the recent decline in the nation’s stock market.

The valuation could dip to a dollar amount of between roughly $10.5 billion and $11.5 billion, the people said, versus earlier expectations for as much as $15 billion. The IPO could take place as soon as May, they said, asking not to be identified discussing private information.

LG Electronics IPO Size

While the valuation figure is potentially lower, LG Electronics India might raise as much as $1.7 billion in the IPO, which is more than originally anticipated, the people said.

Deliberations are ongoing and details including the numbers may change, they said.

A representative at LG Electronics in Korea declined to comment.

India’s benchmark Sensex index has dropped about 10% from a record high in September, a month after LG Chief Executive Officer William Cho told Bloomberg Television that an IPO in Mumbai was being considered.

LG filed its IPO application in December, and received approval for the listing from the Securities and Exchange Board of India earlier this month.

A share sale of that size would be one of India’s biggest, but still a way off Hyundai Motor India Ltd.’s $3.3 billion IPO last year. Hyundai India’s shares have fallen about 11% since their debut.