LG Electronics India made a spectacular debut on the stock market on Tuesday, with shares surging 50.4 per cent, valuing the company at $13.07 billion (Rs 1.15 lakh crore), surpassing its South Korean parent’s market capitalisation of nearly $10 billion (Rs 8,800 crore).
The initial public offering (IPO) has emerged as the most sought-after since 2008, attracting aggressive investor participation. Shares opened at Rs 1,710.10 on the National Stock Exchange (NSE), a sharp rise from the issue price of Rs 1,140, and reached a high of Rs 1,749. As of 12.08 pm, shares were trading at Rs 1,695 on the NSE.
The strong debut reflects high investor confidence in LG Electronics India, driven by the company’s extensive distribution network and premium brand positioning across home appliances and consumer electronics. The premium over the issue price makes it the best stock market debut for a billion-dollar IPO since Eternal in 2021.
Brokerage firm Prabhudas Lilladher assigned a “Buy” rating on the stock, setting a price target of Rs 1,780, citing the company’s robust distribution capabilities and positioning as a premium brand. Motilal Oswal Financial Services also rated the stock as “Buy” with a target of Rs 1,800, noting that LG Electronics India is likely to trade at higher multiples due to strong return ratios, higher operating cash flow conversion, and a strategic focus on localisation, high-margin B2B growth, annual maintenance contracts (AMC), and leadership across key product categories.
The IPO comes at a time when India’s home appliances and consumer electronics market, excluding mobile phones, is projected to grow at a compound annual growth rate (CAGR) of 14 per cent over 2024–2029. Brokerages highlighted that LG Electronics India, with its leadership across major product categories, is well-positioned to capitalise on this growth opportunity.
In its regulatory filing, LG Electronics reported operating profit of 688.9 billion won ($482.6 million) for the three months ended September, reflecting an 8.4 per cent decline from the same period a year earlier. Despite the drop in quarterly profit, the strong IPO response underlines investor optimism about the company’s growth prospects and market positioning in India.
The successful listing positions LG Electronics India as one of the largest and most valuable IPOs in recent years, reaffirming the market’s appetite for established consumer electronics brands and signaling confidence in the country’s expanding consumer goods sector.
