LG Electronics Defies Market Trend, Records Strongest Debut For IPOs Over 10,000 Cr Since 2019

LG Electronics Defies Market Trend, Records Strongest Debut For IPOs Over 10,000 Cr Since 2019

LG Electronics IPO Listing: LG Electronics India, a subsidiary of LG Electronics Inc., Korea, and a leading global single-brand home appliance player, witnessed a bumper listing on Dalal Street on October 14. Its shares debuted at Rs 1,710 apiece, marking a 50% premium over the issue price of Rs 1,140 per share.

The strong debut followed an overwhelming investor response during the IPO's bidding period from October 7 to 9, when it received bids for 385.36 crore shares against 7.13 crore shares on offer — a subscription rate of 54 times.

This robust listing also made it the largest mainboard issue of over Rs 10,000 crore to debut with a 50% premium so far this year. In comparison, Tata Capital's Rs 15,511 crore IPO listed with a modest 1.2% gain, while HDB Financial Services' Rs 12,500 crore issue recorded a 12.8% listing gain in June.

According to Trendlyne data, this is also the biggest listing since 2019 among large IPOs. In contrast, Hyundai Motor India's Rs 27,870 crore IPO last year listed at a 1.3% discount to its issue price. Other large IPOs such as Swiggy and NTPC Green Energy made decent entries in 2024, listing with 7.3% and 3.2% gains, respectively. However, earlier big-ticket IPOs like LIC (Rs 21,000 crore), Paytm's parent One97 Communications (Rs 18,300 crore), and SBI Cards (Rs 10,354 crore) had weak debuts, listing at discounts of 8.1%, 9.1%, and with subdued gains, respectively.

Analysts attribute LG's strong debut to multiple factors — robust industry growth potential, attractive valuations, expanding demand in India's home appliance and consumer electronics market, and the company's leadership across key product categories, supported by strong earnings visibility.

Brokerages are bullish on the stock. Emkay Global has a ‘buy' rating with a target price of Rs 2,050, while Motilal Oswal initiated coverage with a ‘buy' and a Rs 1,800 target, citing strong tailwinds, export potential, and improving margins through localization. Prabhudas Lilladher set a target of Rs 1,780, highlighting growth opportunities, and Ambit Capital gave a ‘buy' rating with a target price of Rs 1,820.

Source: News18
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