LG Electronics India: LG Electronics India soars 50% on debut, outshines Korean parent in market value

Mumbai: LG Electronics India made a strong debut on the Indian bourses on Tuesday, with shares of the consumer durables manufacturer listing at a 50% premium – the best listing performance for a ₹10,000 crore-plus IPO in recent years.The sizzling opening also ensured that the company’s market value exceeded that of its Korean parent.

The company’s market capitalisation on Tuesday was ₹1,14,223 crore, or $12.8 billion, compared with its Korean parent LG Electronics Inc’s $9.3 billion.

LG’s Indian arm clocked a revenue of ₹24,367 crore in FY25, while the Korean giant reported a rupee equivalent revenue of around ₹82,500 crore in 2024, according to ETIG.

Shares of LG India opened at ₹1,710 compared with its offer price of ₹1,140. The stock ended slightly lower at ₹1,682.8.

“The listing gains for LG Electronics India were better than expected, and the stock now trades close to our long-term price target of ₹1,850,” said Vaqarjaved Khan, senior fundamental analyst at Angel One.

Khan said the company continues to deliver stronger margins, returns and earnings compared to domestic peers such as Blue Star and Voltas, but the valuation comfort seen before the IPO has now moderated.Three brokerages – Motilal Oswal Financial Services (₹1,800), PL Capital (₹1,780) and Emkay (₹2,050) – have initiated coverage on the stock with a ‘Buy’ rating, implying upsides of 6-22% from current levels.”We believe LG Electronics India is fairly valued around ₹1,850 in the near term, with limited upside from current levels,” said Aakash Fadia, vice-president – Consumer Durables, Institutional Equities Research, Yes Securities. “Investors who received IPO allotments may consider booking profits, while fresh investors could look to enter on dips, particularly around the second-quarter results, which may be impacted by softer primary sales,” he said.

Echoing Fadia, Khan too said investors, who received allotment in the IPO, could consider booking profits as the stock moves higher over the next few days, and look for re-entry opportunities after the second-quarter results. “For new investors, a correction toward the ₹1,600-1,630 range would offer a more attractive risk-reward setup,” he said.