The initial public offering (IPO) of LG Electronics was listed on the stock market on Tuesday, October 14. The shares of LG Electronics Ltd are trading at 50% premium of the IPO issue price, making a blockbuster debut on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) ahead of the Diwali festival.
The shares of LG Electronics were listed at Rs 1,710 per share on NSE and Rs 1,715 on BSE on Tuesday. Motilal Oswal has targeted the share price of LG Electronics India of Rs 1,800 per share, implying 58% upside from current levels. They believe that a strategic focus on localisation is expected to further expand gross margin, as reported by Financial Express.
Anand Rathi also gave coverage on the electronics company with a Buy rating with a price target of Rs 1,725, forecasting 51% upside from current levels.
On the listing of LG Electronics Ltd shares, the price per share went up to 50.4% in the BSE pre-open session with Rs 1,715 ahead of the company’s market debut.
Also Read | LG Electronics India lists on NSE with a gain of over 50% at Rs 1,710.10/ share.
LG Electronics IPO debut share market debut was better than the expectations in the grey market, which had expected a 40% listing gain.
Buy Or Sell
According to Mehta Equities, LG Electronics India is a long story, which has served India's growth in electronics, specially in home appliances market, where the company holds a top position across multiple categories. The valuation of the company was attractively priced relative to the industry average of comparable listed peers. On premium listing, Mehta Equities said that GST 2.0 has enhanced consumer affordability and driven strong volume growth in the upcoming quarters.
Allotted Investors: Those who selected for the LG Electronics IPO allotment can hold for long term as the company's growth is backed by LG's dominant market position, diversified product mix, and consistent growth outlook, while noting possible short-term volatility.
Non-Allotted Investors: Monitor LG Electronics shares post listing price movements and buy after meaningful dips.