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LG India notches up a market cap higher than its South Korean parent
LG India’s market capitalisation is now also higher than listed peers Whirlpool, Voltas and Havells, thanks to the 50% surge in its share price on listing day.
A 50% surge in LG India’s share price on listing day has ascribed the home-appliance maker a market capitalisation higher than its parent in South Korea.
Shares of LG Electronics India Ltd. rose 50.4% over its IPO price of ₹1,140 apiece to list at ₹1,715 each on the BSE, notching up in the process a market capitalisation of $13.07 billion, or ₹1,16,049 crore. In comparison, LG Electronics Inc. had a valuation of roughly $9 billion in Seoul, according to Korea Exchange (Kosdaq).
LG India’s market capitalisation is now also higher than listed peers Whirlpool India Ltd., Voltas Ltd. and Havells India Ltd., which are valued between $1.7 billion and $10.4 billion.
LG India Share Price
LG India’s listing-day pop was the best for a billion-dollar IPO in India since 2021, as WeWork India Ltd. and Tata Capital Ltd. had muted debuts on Dalal Street.
“After a long time, we are seeing a genuinely strong IPO in the consumer space—solid fundamentals, reasonable valuations and sector-leading growth prospects,” Dhiraj Relli, managing director and CEO of HDFC Securities, told Reuters.
LG India IPO
Earlier, LG Electronics India—the country’s second largest home-appliance maker—sold shares in the most-subscribed billion-dollar IPO in nearly two decades, eclipsing that of Life Insurance Corporation of India’s $2.7-billion IPO in 2022, and Paytm’s $2.5-billion IPO and Zomato’s $1.3-billion IPO in 2021.
The 7-9 October LG India IPO was subscribed 54.02 times, receiving bids worth a staggering $50 billion. Investors, mostly qualified institutional buyers and high net-worth individuals, bid for 385.36 crore shares against 7.13 crore shares on offer.
“Institutional investors are unlikely to be satisfied with the current allocation and will be forced to participate aggressively in the listing and beyond to achieve reasonable sizing,” Relli of HDFC Securities said.
