Blockbuster Listing: LG Electronics India Soars 50% On Debut

LG Electronics made a smashing debut on the primary indices on Tuesday, listing at just over a 50% premium.

Shares of the consumer electronics firm opened at ₹1,710.1 on the NSE, representing a 50% gain over its IPO price of ₹1,140. It debuted at ₹1,715 on the BSE, up 50.44%.

At the time of writing, the stock was trading at ₹1,701.1 on the NSE and ₹1703.9 on the BSE.

IPO Details

LG Electronics India is the second South Korean company to list in India, following Hyundai Motor India debut in October last year.

LG’s ₹11,607-crore issue witnessed robust investor demand, being subscribed 54.02 times on the final day of bidding, driven primarily by strong institutional interest.

According to NSE data, the IPO received bids for 3.85 billion shares against an offer of 71.3 million shares. The Qualified Institutional Buyers (QIBs) segment saw extraordinary traction, with a subscription of 166.51 times, while the non-institutional investors (NIIs) category was subscribed 22.44 times. The retail investors’ portion also saw healthy participation, being 3.54 times subscribed.

The IPO, priced between ₹1,080 and ₹1,140 per share, values the company at about ₹77,400 crore at the upper end of the range.

Since the IPO was a pure OFS, LG Electronics India will not receive any proceeds from the listing.

Brokerages Views

Motilal Oswal: The brokerage has initiated coverage on LG Electronics India with a ‘Buy’ rating and a target price of ₹1,800 per share. It expects the company’s strategic focus on localization to further strengthen gross margins and profitability.

Anand Rathi: Also began coverage on LG Electronics India with a ‘Buy’ call and a target price of ₹1,725. The firm believes that continued innovation, a strong distribution network, and superior after-sales service will be key growth drivers post listing.

Analyst’s Take

LG Electronics India stands as the market leader in home appliances and air solutions, backed by a vast offline presence and strong premium brand positioning, said SEBI-registered investment advisor Cashvisory India.

The company has consistently demonstrated solid financial performance, with double-digit revenue growth, healthy returns, and stable margins reflecting its operational strength, they said.

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