Did LG Electronics India Really Surpass $13.07 Billion on Its Trading Debut?
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Synopsis
LG Electronics India has made headlines with a remarkable trading debut, witnessing a staggering 50.4% increase in share price, reaching a valuation of $13.07 billion. Investors are optimistic about the company’s potential in the growing home appliance market. Discover the factors behind this incredible surge and what it means for the future.
Key Takeaways
- LG Electronics India's shares surged by 50.4% on debut.
- The company is now valued at $13.07 billion.
- Strong investor confidence is evident in the market.
- Projected CAGR for consumer electronics is 14% over the next five years.
- Brokerages maintain 'Buy' ratings with optimistic target prices.
New Delhi, Oct 14 (NationPress) LG Electronics India’s shares surged by 50.4 percent during its trading debut on Tuesday, achieving a valuation of $13.07 billion (Rs 1.15 lakh crore) and surpassing its South Korean parent’s market capitalisation of nearly $10 billion (Rs 8,800 crore). This remarkable rise marks the most anticipated IPO in India since 2008, with investors showing strong enthusiasm.
The stock commenced trading at Rs 1,710.10 on the National Stock Exchange, significantly up from the issue price of Rs 1,140, and peaked at Rs 1,749. As of 12:08 PM, shares were priced at Rs 1,695 on the NSE.
This impressive debut reflects heightened investor confidence in LG Electronics India, showcasing the company’s vast distribution network and premium brand positioning.
The premium over the issue price indicates that LG Electronics India achieved the best stock market debut for a billion-dollar IPO since Eternal in 2021.
Brokerage firm Prabhudas Lilladher assigned a “Buy” rating to the stock with a price target of Rs 1,780, highlighting the company's strong distribution network and premium branding.
In addition, Motilal Oswal Financial Services also recommended a “Buy” rating and set a target price of Rs 1,800. They stated, "We anticipate LGEIL to trade at elevated multiples, given the robust return ratios, superior OCF conversion, strategic localization focus, and targeted growth in high-margin B2B and AMC revenues, as well as its leadership in key product categories."
The home appliances and consumer electronics sector in India (excluding mobile phones) is projected to achieve a CAGR of 14 percent from CY24 to CY29.
According to the brokerage, "LG Electronics India (LGEIL), with its dominant position in crucial product categories, is ideally positioned to leverage this growth opportunity."
For the quarter ending in September, estimated operating profit reached 688.9 billion won ($482.6 million), reflecting an 8.4 percent decline from the previous year, as per LG Electronics’ regulatory filing.
Point of View
The soaring debut of LG Electronics India showcases the growing investor confidence in India's consumer electronics market. This trend highlights the potential for substantial growth in the sector, aligning with the country's economic trajectory. As the nation embraces innovation and advanced technology, LG's position is indicative of larger market dynamics at play.
NationPress
14/10/2025
Frequently Asked Questions
What was LG Electronics India's trading debut share price?
LG Electronics India's shares opened at Rs 1,710.10 during their trading debut, significantly up from the issue price of Rs 1,140.
What is the current market valuation of LG Electronics India?
As of its trading debut, LG Electronics India is valued at $13.07 billion (Rs 1.15 lakh crore).
Which brokerage firms have given buy ratings for LG Electronics India?
Brokerages Prabhudas Lilladher and Motilal Oswal Financial Services have both issued 'Buy' ratings for LG Electronics India.
What is the projected growth rate of India's consumer electronics market?
India's home appliances and consumer electronics market is estimated to grow at a CAGR of 14 percent over CY24-29.
How did LG Electronics perform in the previous quarter?
For the quarter ending in September, LG Electronics reported an estimated operating profit of 688.9 billion won ($482.6 million), down 8.4% from the previous year.
