E-Paper
LG India share price surges 48% in best trading debut for a billion-dollar IPO in India
LG India share price rose as much as 52.31% over the IPO price of ₹1,140, before giving up some gains to end the day 48.19% higher at ₹1,689.40 apiece.
LG Electronics India Ltd. soared 48% for the best trading debut for a billion-dollar IPO in India, underscoring the investor appetite in the world's fourth largest stock market.
LG India's share price rose as much as 52.31% over the IPO price of ₹1,140 to ₹1,736.40 apiece on the BSE, before giving up some of the gains to end the day 48.19% higher at ₹1,689.40 apiece. The benchmark S&P BSE Sensex ended the day 0.36% lower at 82,029.98 points.
That gave India's second-largest appliance maker a market capitalisation of about $13 billion (about ₹1,15,500 crore), which is higher than its parent LG Electronics Inc. in Seoul and rivals Voltas Ltd., Blue Star India Ltd. and Havells India Ltd. at Mumbai.
“LG’s record-breaking market debut was driven by strong investor conviction on vision and fundamentals of the company,” Atul Mehra, managing director and chief executive of book-running lead manager Axis Capital Pvt. Ltd., told Bloomberg. “The blockbuster listing underscores the depth and maturity of India’s equity market, showing it can absorb large, high-quality issuances at responsible valuations.”
Prior to LG India, whose IPO fetched ₹11,600 crore, the best listing-day gain for an IPO that raised at least ₹10,000 crore was Coal India Ltd. in 2010, when it surged 40%, according to Bloomberg data.
LG India Share Price & Valuations
The prospects of getting a bargain stoked demand for LG India shares.
Earlier, LG India had offered shares an IPO at discounted valuations — from an anticipated $15 billion to $9 billion — which gave the stock the runaway to soar on listing day. It's worth noting here that LG India had suspended its IPO plans and scaled back expectations about how much the deal would raise.
Analysts at Motilal Oswal Financial Services, Emkay Global Financial Services Ltd. and Equirus Capital are bullish on the LG India stock, setting share price targets from ₹1,705 to ₹2,050 apiece. Sharekhan Ltd., however, believes that the stock appeared fairly valued at the IPO price.
LG India IPO Allotment Status
The allotment status for the LG India IPO has been finalised, marking a key milestone for what is one of India's most anticipated listings so far this year.
Applicants can check their allotment status by visiting https://kfintech.com and selecting the LG Electronics IPO link under the ‘IPO Status’ section. The allotment can be verified using PAN, application number, or DP/Client ID.
Refunds for unallotted investors are expected to begin on 14 October.
Credit of shares to demat accounts will be completed by 15 October.
LG India IPO: Subscription Status
The 7-9 October LG India IPO — the second by a South Korean company in India after Hyundai Motor Co. Ltd.'s last year—was subscribed 54 times.
Investors bid for 385.36 crore shares against 7.13 crore shares on offer in the LG India IPO, translating into a subscription of 54.02 times, according to data on the website of the National Stock Exchange of India. The IPO has so far raised 4,39,311.40 crore from 65,06,683 applications.
The LG India IPO was fully subscribed on the first day itself and garnered 3.3 times subscription on the second day. That, after the company raised ₹3,474.90 crore from anchor investors.
The company plans to use the proceeds from the fresh issue for expanding manufacturing capacity, enhancing R&D, and setting up new product lines in emerging categories such as AI-powered home appliances.
LG India, which has been operational in India for nearly three decades now, reported FY25 revenue of ₹29,600 crore and net profit of ₹2,850 crore, with a double-digit growth trajectory in both its appliances and consumer electronics divisions.
