LG Electronics India Shares Surge Over 48% in Impressive Market Debut

LG Electronics India Ltd's shares made an impressive debut on Tuesday, closing with a 48% premium over the issue price of Rs 1,140. The stock opened at Rs 1,715 on the BSE, marking a 50.43% increase from the issue price. It peaked at Rs 1,736.40 during the day and ended at Rs 1,689.40, up by 48.19%. On the NSE, it started at Rs 1,710.10 and closed at Rs 1,689.90, up by 48.23%.

The company's market valuation reached Rs 1,14,671.81 crore despite a broader market decline. The BSE Sensex fell by 297.07 points or 0.36% to close at 82,029.98, while the NSE Nifty dropped by 81.85 points or 0.32% to settle at 25,145.50. This strong debut occurred on a day when the overall equity market was down.

IPO Performance and Market Context

In terms of trading volume, LG Electronics saw significant activity with 78.56 lakh shares traded on the BSE and 687.94 lakh shares on the NSE throughout the day. This listing day surge is notable among recent large IPOs. The IPO coincided with Tata Capital's offering, which was this year's largest issue.

LG Electronics India's IPO raised Rs 11,607 crore and is the third-largest of 2025, following Tata Capital's Rs 15,512 crore and HDB Financial Services' Rs 12,500 crore offerings. The IPO was entirely an Offer For Sale (OFS) of 10.18 crore shares, representing about a 15% stake by its South Korean parent company.

Company Background and Market Strategy

The IPO received an overwhelming response with a subscription rate of 54.02 times on its final bidding day last Thursday, largely due to strong institutional investor interest. The price band for the IPO was set between Rs 1,080 and Rs 1,140 per share.

LG Electronics India is a prominent player in home appliances and consumer electronics sectors. It caters to both B2C and B2B markets in India and internationally. The company offers products like washing machines, refrigerators, LED TV panels, inverter air conditioners, and microwaves.

The company operates manufacturing facilities in Noida, Uttar Pradesh and Pune, Maharashtra. It also provides installation, repair, and maintenance services for its products.

Comparative Market Debuts

This marks LG Electronics as the second South Korean firm to enter the Indian stock market after Hyundai Motors India Ltd's listing in October last year. In contrast to LG's robust debut, Tata Capital Ltd's shares had a subdued start on Monday with just over a 1% increase from its issue price of Rs 326.

The strong debut of LG Electronics highlights investor confidence in its business model and growth prospects within India's competitive consumer electronics market.

With inputs from PTI