LG Electronics India shares settled 48 percent higher from its IPO price on the debut day at Rs 1,682.8 per share on the NSE. The stock, however, settled nearly 2 percent lower from its open price on October 14.
The stock had made a bumper stock market debut to list at 50 percent premium over its IPO price on the National Stock Exchange (NSE), following a 54.02 times subscription to its issue between October 7-9 in the primary market.
Shares of LG Electronics India were listed at Rs 1,710.10 per share on the NSE, a strong premium of 50.01 percent. The Rs 11,607-crore issue had a price band of Rs 1,080-1,140 per share.
On the BSE, the shares were listed at Rs 1,715 per share, a premium of 50.44 percent. The company's market capitalization on the debut day stood at Rs 1,14,671.81-crore.
LG Electronics India IPO share market debut was better than the expectations in the grey market, which had expected a 40 percent listing gain.
LG Electronics India shaer price listing: Should you buy, sell or hold?
"LG Electronics India remains a compelling long-term structural story, serving as a proxy for India’s fast-growing, value-driven home appliances market, where the company holds a No. 1 position across multiple categories.
"The valuation was attractively priced relative to the industry average of comparable listed peers, justifying the premium listing. Near-term growth visibility also remains encouraging, aided by the anticipated GST 2.0 reforms, which could enhance consumer affordability and drive strong volume growth in the upcoming quarters," said Mehta Equities.
Here's their recommendation:
Allotted Investors: HOLD for the long term, backed by LG’s dominant market position, diversified product mix, and consistent growth outlook, while noting possible short-term volatility.
Non-Allotted Investors: Adopt a ‘Wait and Watch’ approach — monitor post-listing price movements and consider accumulating on meaningful dips.
"On the valuation front, based on annualized FY26 earnings, the company is seeking a P/E of 37.6 times, and a post-issue market capitalization of approximately Rs 7,73,801 million, making the issue appears to be reasonably priced. Looking at strong legacy brand recognition with market leadership across multiple consumer durables products along with in-house production capacity among the peers in India making it giant in industry. Hence, investors those who have got allotted the shares could book part profits at premium listing and may hold the rest for long term post listing," said Narendra Solanki of Anand Rathi.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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