LG Electronics India soars over 50 pc on trading debut, valuation hits $13.07 billion

New Delhi, Oct 14 LG Electronics India shares jumped 50.4 per cent on their trading debut on Tuesday, valuing the company at $13.07 billion (Rs 1.15 lakh crore) and surpassing its South Korean parent’s market capitalisation of nearly $10 billion (Rs 8,800 crore).

The surge marks the country’s most sought-after IPO since 2008, as investors poured in aggressively.

The stock opened at Rs 1,710.10 on the National Stock Exchange, a sharp rise from the issue price of Rs 1,140, and touched a high of Rs 1,749. As of 12.08 pm, shares were trading at Rs 1,695 on National Stock Exchange (NSE).

The strong debut underscores investor confidence in LG Electronics India, highlighting the company’s extensive distribution network and premium brand positioning.

The premium over the issue price signalled that LG Electronics India was the best stock market debut for a billion-dollar IPO since Eternal in 2021.

Brokerage Prabhudas Lilladher gave a “Buy” rating on the stock and set a price target of Rs 1,780, citing the company's extensive distribution network and premium brand positioning.

Another broking firm, Motilal Oswal Financial Services, also gave a “Buy” rating and a target price of Rs 1,800. "We expect LGEIL to trade at higher multiples, given the strong return ratios, higher OCF conversion, a strategic focus on localisation, targeted growth in high-margin B2B and AMC revenues, and a leadership position across key product categories," said Motilal Oswal Financial Services.

India’s home appliances and consumer electronics market (excluding mobile phones) is estimated to post a CAGR of 14 per cent over CY24-29.

"LG Electronics India (LGEIL), with its leadership across key product categories, is well-positioned to capitalise on this growth opportunity," the brokerage said.

Operating profit for the three months ended in September came to an estimated 688.9 billion won ($482.6 million), down 8.4 per cent from a year earlier, LG Electronics said in a regulatory filing.

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