LG Electronics India made a blockbuster debut on the exchanges with its shares getting listed at Rs 1715 on the BSE, a premium of Rs 575 or 50.44% over the issue price of Rs 1140. On the National Stock Exchange (NSE), LG Electronics' share price debuted at a premium of 50.01% at Rs 1,710.10.
The Korean brand’s listing beat the market expectations, as signalled by its grey market premium (GMP). Ahead of the stock market debut, LG Electronics shares traded at Rs 1562 in the unofficial grey market, signalling a listing premium of 37%.
The strong listing came after LG Electronics’ recorded one of the highest subscriptions ever for a large Indian IPO (Rs 10,000 crore and above), with its initial share sale oversubscribed 54 times. Bids were placed for 385 crore shares compared to the 7.13 crore shares on offer. The IPO set a new record by attracting bids worth Rs 4.43 lakh crore at the top end of its price band of Rs 1,080 to Rs 1,140 per share. Most analysts had viewed the issue as attractively priced relative to peers and hence there was a robust demand for the same.
Shivani Nyati, Head of Wealth at Swastika Investmart, said that given the sharp listing premium, investors are advised to book partial profits to secure gains while retaining the remaining portion for potential long-term appreciation. A stop-loss near Rs 1,400 is recommended to safeguard against market volatility.
Brokerage firm Motilal Oswal Financial Services said that India's home appliances and consumer electronics market (excluding mobile phones) is estimated to post a CAGR of 14% over CY24-29 and LG Electronics India (LGEIL), with its leadership across key product categories, is well-positioned to capitalise on this growth opportunity. LG holds strong market share in premium segments, such as OLED TVs (63%), front-load washing machines (37%), and side-by-side refrigerators (43%).
“We initiate coverage on LGEIL with a BUY rating and a TP of ₹1,800, premised on 40x FY28E EPS. LGEIL should trade at a higher multiple, given the strong return ratios, higher OCF conversion and a strategic focus on localisation,” said Motilal Oswal Financial Services.
ICICI Securities stated that the recent reduction in GST rates, income tax and interest rates augurs well for the growth of most categories in FY27-28E and model LG to be a beneficiary. “We model LG India to report revenue/PAT CAGR of 9.3%/7.9% over FY25–28E. We initiate coverage on the stock with a BUY rating and a DCF-based target price of ₹1,700 (implying 45x FY27E and 42x FY28E earnings). Key risks: Steep competition, delay/ failure in launch of new products, and rapid technological changes,” it added.
