LG Electronics India Surges Over 50% on Trading Debut, Valuation Hits $13 Billion

New Delhi – Shares of LG Electronics India (LGEIL) soared 50.4% on their stock market debut on Tuesday, giving the company a market valuation of $13.07 billion (Rs 1.15 lakh crore) — surpassing the market capitalization of its South Korean parent, which stands at nearly $10 billion (Rs 8,800 crore).

The IPO has been the most eagerly awaited in India since 2008, drawing strong investor interest. The stock opened at Rs 1,710.10 on the National Stock Exchange (NSE), significantly above its issue price of Rs 1,140, and touched an intraday high of Rs 1,749. As of 12:08 pm, shares were trading at Rs 1,695 on the NSE.

The stellar debut reflects strong investor confidence in LG Electronics India, driven by its extensive distribution network and premium brand positioning. The premium over the issue price marks it as the most successful billion-dollar IPO debut in India since Eternal in 2021.

Brokerage Prabhudas Lilladher rated the stock a “Buy” with a target of Rs 1,780, citing the company’s robust distribution network and premium positioning. Motilal Oswal Financial Services also recommended a “Buy” with a target of Rs 1,800, noting the company’s strong return ratios, high operational cash flow conversion, strategic focus on localization, growth in high-margin B2B and AMC revenues, and leadership across key product categories.

India’s home appliances and consumer electronics sector (excluding mobile phones) is projected to grow at a CAGR of 14% from 2024 to 2029. “LG Electronics India, with its leadership across key product categories, is well-positioned to capitalize on this growth opportunity,” the brokerage added.

In a regulatory filing, LG Electronics reported an estimated operating profit of 688.9 billion won ($482.6 million) for the three months ending September, down 8.4% year-on-year.

With inputs from IANS