LG Electronics India Soars in Blockbuster $13 Billion IPO, Outshining Parent Company
Mumbai — LG Electronics India made a spectacular debut on the stock market, surging 53.4% on its first day of trading, and surpassing the market value of its South Korean parent company.
The IPO, which raised $1.3 billion, has captured investor attention thanks to the company’s strong growth prospects, robust consumer demand, and strategic expansion plans, marking a milestone in India’s vibrant IPO landscape.
The company’s listing comes at an opportune time, coinciding with India’s festive season when consumer spending peaks, and amid a supportive economic environment driven by recent tax cuts on consumer electronics and a dovish central bank policy.
These measures are expected to bolster appliance makers’ growth in the near term, providing favorable conditions for LG Electronics India’s expansion and long-term profitability.
Industry analysts hailed the IPO as one of the strongest in India since 2021.
Deven Choksey, managing director at DRChoksey FinServ, noted that LG’s consumer-oriented offerings had received a better response compared to other ongoing IPOs, reflecting investor confidence in the company’s fundamentals and sector-leading growth potential.
Unlike other major listings such as Tata Capital and WeWork India, LG’s IPO was fully subscribed within hours, with bids totaling nearly $50 billion, highlighting the exceptional market enthusiasm.
On its listing day, LG Electronics India’s shares closed 48.2% higher than the issue price, achieving a market valuation of approximately $13 billion, surpassing its $8.73 billion target and even the $9 billion valuation of its parent company, LG Electronics.
This milestone underscores the growing prominence of India as a global manufacturing and retail hub for consumer electronics, and reinforces investor faith in LG India’s strategic vision.
The IPO proceeds reflect a strong endorsement from multiple investor segments. Qualified institutional buyers oversubscribed their quota 166.5 times, while non-institutional and retail investors also participated enthusiastically, subscribing 22.4 times and 3.54 times their respective allocations.
According to Dhiraj Relli, managing director and CEO of HDFC Securities, the response demonstrates confidence in LG India’s solid fundamentals, reasonable valuations, and long-term growth prospects in the consumer space.
Investors are particularly optimistic about LG India’s manufacturing and expansion initiatives. The company has already begun constructing its $600 million third manufacturing facility, which is expected to strengthen India’s position as a global export hub for home appliances and electronics.
By increasing production capacity and leveraging India’s favorable manufacturing policies, LG Electronics India is poised to meet rising domestic and international demand while maintaining competitiveness against global rivals.
The IPO also represents a strategic move by the parent company to optimize its stake in the Indian subsidiary while supporting its core TV and appliance business amidst rising competition from Chinese manufacturers.
By offering 15% of its shares for sale, LG Electronics ensures continued growth and market participation without compromising operational efficiency or profitability.
Furthermore, the listing has attracted significant analyst coverage, with at least five brokerages initiating recommendations with price targets ranging between 1,700 and 1,800 rupees.
This coverage is expected to further boost investor confidence and support sustained market interest in LG Electronics India shares.
In conclusion, LG Electronics India’s IPO is a remarkable success story that demonstrates the strength of India’s consumer electronics market, the appeal of well-managed and growth-oriented companies, and the increasing global recognition of India’s manufacturing and retail potential.
The robust debut, strong investor demand, and strategic expansion initiatives position LG India as a leader in the consumer electronics space, driving innovation, boosting production, and creating long-term value for shareholders.
With continued policy support and strong market fundamentals, LG Electronics India is set for a promising trajectory in the coming years, reinforcing India’s status as a key player in the global appliance market.
