LG Electronics IPO listing: LG Electronics India, a subsidiary of LG Electronics Inc., Korea, and a leading global single-brand home appliance player, witnessed a bumper listing on Dalal Street today, October 14. Its shares debuted at ₹1,710 apiece, marking a ₹1,140 per share”>50% premium over the issue price of ₹1,140 per share.
The stellar market debut followed the strong response the IPO received during its bidding period from October 7 to 9, when it garnered bids for 385.36 crore shares against the 7.13 crore shares on offer, translating into a subscription rate of 54 times.
The robust₹10,000 crore to list with a 50% premium”> listing also made it the largest mainboard issue of over ₹10,000 crore to list with a 50% premium so far this year. In comparison, Tata Capital, the biggest IPO by size at ₹15,511 crore, listed with a modest 1.2% gain, while HDB Financial Services, which debuted in June with an issue size of ₹12,500 crore, recorded a 12.8% listing gain.
According to Trendlyne data, this was also the biggest listing since 2019 for big-ticket IPOs. By contrast, in the same period last year, Hyundai Motor India, another Korean company with an issue size of ₹27,870 crore, made a weak market debut, listing at a 1.3% discount to its issue price.
Looking at other large IPOs above ₹10,000 crore, Swiggy and NTPC Green Energy made a decent entry on Dalal Street in 2024, listing with gains of 7.3% and 3.2%, respectively. In contrast, some of the biggest IPOs in the recent past had weak debuts.
Life Insurance Corporation (LIC), with an issue size of ₹21,000 crore, listed at an 8.1% discount to its IPO price. One97 Communications, the parent company of Paytm, with a ₹18,300 crore issue, debuted at a 9.1% discount, while SBI Cards and Payment Services, another major IPO of ₹10,354 crore, also had a subdued market debut in 2020.
So, what helped LG buck the big-issue trend? Analysts attribute its strong debut to several factors, including the robust growth potential of the industry, attractive valuations, the expanding home appliance and consumer electronics market in India, and the company’s leadership across key product categories, supported by strong earnings visibility that made it stand out from peers.
Analysts see LG Electronics share price rising up to ₹2,050
Multiple domestic brokerage firms have given an optimistic outlook on LG Electronics India, initiating coverage with positive ratings and upbeat price targets. Emkay Global Financial Services has initiated coverage on the stock with a ‘buy’ rating and set a target price of ₹2,050 per share.
Similarly, Motilal Oswal began coverage with a ‘buy’ rating and a target price of ₹1,800 per share, citing strong industry tailwinds, the company’s leadership position, and its export potential.
The brokerage expects the company to trade at higher valuation multiples, supported by strong return ratios, higher operating cash flow (OCF) conversion averaging 74% during FY26–28E, a strategic focus on localization expected to further expand gross margins, targeted growth in high-margin B2B and AMC businesses, and a leadership position across key product categories.
Meanwhile, Prabhudas Lilladher has also initiated coverage with a ‘buy’ rating and a target price of ₹1,780 per share, noting the company is well-positioned to capitalize on growth opportunities in the home appliances and consumer electronics markets.
Additionally, Ambit Capital has initiated coverage on the company with a ‘buy’ rating and a target price of ₹1,820 per share.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
