LG Electronics share price continued to rise for a second consecutive day following its impressive debut on Tuesday, October 14. On the NSE, LG Electronics India share price debuted at ₹1,710.10, showcasing a premium of 50%. Ultimately, the shares finished 48.23% higher at ₹1,689.90.
Similarly, LG Electronics share price made a remarkable market entry and concluded with a gain of over 48% compared to its issue price of ₹1,140 on the BSE. The shares began trading at ₹1,715, reflecting a surge of 50.43% from the original issue price on the BSE. Throughout the day, the stock climbed 52.31% to reach ₹1,736.40. By the end of the trading session, the company’s shares closed at ₹1,689.40, marking an increase of 48.19%.
The company’s market capitalisation was recorded at ₹1,14,671.81 crore.
The initial public offering of LG Electronics India Ltd was oversubscribed by 54.02 times on the final day of bidding, spurred by strong participation from institutional investors.
Mohit Gulati, CIO and managing partner of ITI Growth Opportunities Fund, believes that the sharp 50% pop in LG Electronics share price is a reflection of deep investor confidence in the company’s fundamentals and future readiness. Interestingly, beyond the strong Institutional & retail participation, it was the employee portion that witnessed overwhelming subscription — and rightly so. The people of a company are its true essence. The value they’ve helped create over years of hard work and loyalty is now reflecting back on them. This isn’t just a financial reward — it’s an emotional one that supersedes all.
LG Electronics IPO consisted entirely of an Offer For Sale (OFS) of 10.18 crore shares, which accounts for approximately 15% of the stake, offered by the parent company based in South Korea.
This marks the second South Korean firm to enter the Indian stock market, following Hyundai Motors India Ltd’s listing in October of the previous year. The LG Electronics IPO, valued at ₹11,607 crore, had a price band set between ₹1,080 and ₹1,140 per share.
More upside ahead or profit-taking due?
Arun Kejriwal, the founder of Kejriwal Research and Investment Services, stated that there were three to four factors that contributed to LG Electronics India’s significant 50% premium listing. Firstly, the issue was reasonably priced. Secondly, the company operates in a sector where it is a leading player. In the electronic and white goods market, it is among the top firms and is widely respected compared to Japanese, Korean, and Chinese brands available in the country. It has a legacy, having been in India for approximately 66 years. All these aspects create a positive sentiment about the brand.
Another crucial aspect is that this is the second Korean firm to go public after Hyundai. The situation with Hyundai deteriorated from the first day of listing. At that time, the company was looking to raise funds, but it lacked capacity and there were no growth prospects until a new plant commenced operations, which were seen as negative factors from an investor’s viewpoint. In contrast, this company is raising money for an OFS while also discussing new expansion plans, with the plant expected to become operational much sooner. They are establishing a large facility.
The issue attracted significant subscription and there was lively grey market activity from the outset. The premium gradually increased, and yesterday’s listing exceeded the GMP, resulting in a 50% pop. Considering the subscription numbers that the company experienced, such a jump is quite rare.
On the downside, however, is whether this price can be maintained. It seems very unlikely in the short term. Investors who have received shares should consider whether to lock in profits or maintain a stop loss at the day’s low upon listing.
Disclaimer: 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.
