LG Electronics India has delivered the best stock market debut among all Indian IPOs exceeding Rs 10,000 crore, closing 48.2 percent higher than its issue price on October 14. The Rs 11,607-crore listing outperformed several of India’s largest public issues in recent years, including Coal India, LIC, Hyundai India, Paytm, and GIC RE.
Bloomberg data for the top 10 IPOs above Rs 10,000 crore show that LG Electronics India’s debut gains were the highest on record. Coal India, which had listed in 2010, had previously held the top spot with a 39.8 percent gain, followed by Swiggy and HDB Financial Services, which rose 16.9 percent and 13.6 percent, respectively. In contrast, high-profile listings such as Paytm (-27.4 percent), Reliance Power (-17.3 percent), LIC (-7.8 percent), and Hyundai India (-7.2 percent) opened below their issue prices. This week, Tata Capital managed only a modest 1.4 percent uptick.
The LG Electronics India IPO, subscribed 54 times, witnessed overwhelming investor demand in the primary market, making it the most bid-for billion-dollar issue since 2008. The shares were listed at Rs 1,710.1 on the NSE, representing a 50 percent premium to the issue price of Rs 1,140 per share. The stock eventually settled at Rs 1,682.8 on Tuesday, giving the company a market capitalisation of Rs 1.14 lakh crore -- surpassing that of its South Korean parent, LG Electronics.
The stellar debut has sparked widespread brokerage interest. Nomura has initiated coverage on the stock with a ‘buy’ rating and a target price of Rs 1,800 per share, noting that India’s favourable demographics and the secular trend of premiumisation across consumer categories offer a significant runway for growth. The brokerage expects post-tax ROE and ROIC of 31 percent and 56 percent, respectively, by FY28, and sees the company trading at the mid-point of its 30-45x earnings band.
Other firms, including Motilal Oswal and Prabhudas Lilladher, have also started coverage with ‘buy’ calls and similar price targets in the Rs 1,780-1,800 range. They cite LG’s strong brand leadership, extensive distribution network, and localisation-driven strategy as key competitive strengths.
With the debut day rally propelling LG Electronics India into the ranks of the country’s most valuable consumer goods companies, analysts say the listing shows renewed investor appetite for consumer-facing businesses that combine premium brand positioning with strong execution and scale.
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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