LG Electronics shares fall 4% after 3-month lock-in expiry, down 18% since listing: What lies ahead

LG Electronics India share price

• LG Electronics shares fell over 4% after three-month lock-in period ended
• Around 1.52 crore shares, worth Rs 2,214 crore, became eligible for trading
• Analysts see long-term potential despite near-term volatility and profit decline

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The shares of LG Electronics India fell more than 4 percent on January 8 after the three-month shareholder lock-in period came to an end.

The shares of the electronics major fell to Rs 1,393.20 apiece, the lowest level seen by the stock since listing.

LG Electronics' three-month lock-in period expires:

Around 1.52 crore shares, or approximately 2 percent of the company's outstanding equity, have become eligible for trading after the expiry of the lock-in period, CNBC-TV18 quoted Nuvama Alternative and Quantitative Research as saying. The said number of shares will be cumulatively worth around Rs 2,214 crore based on the stock’s previous closing price of Rs 1,456.40 per share.

However, this does not imply that all these shares will be offloaded in the market immediately. The expiry of the lock-in period simply means that these shares can now be traded.

LG Electronics bumper market debut:

The stock had made a strong market debut on December 10, listing at Rs 1,710.10 apiece on NSE. This marked a premium of 50 percent from the IPO price of Rs 1,140 per share.

This came after the Rs 11,607-crore IPO of the company was subscribed more than 54 times. The stock is currently around 18 percent lower than its listing price.

What lies ahead?

LG Electronics India is investable in the long term owing to sound fundamentals, said Nitant Darekar Research Analyst at Bonanza. The company is a prominent player in the market for products, like washing machines in which it has 33.4 percent of the market share and in refrigerators it has 29.9 percent of the market share.

"The Rs 5,000 crore Sri City investment over 4-5 years signals conviction in capacity expansion and export optionality under the Global South strategy. While Q2 FY26 EBITDA margins compressed to 8.9% from 12.4% due to GST transition disruptions, commodity inflation, and promotional investments, management expects recovery through localization (targeting 70% from current 55.8%), premiumization, AMC recurring revenue, and B2B expansion," he explained.

With the GST cut digested, healthy Rs 4,280 crore liquidity and strong brand momentum entering festive season, the long-term outlook supports sustained market share gains and margin normalization, though near-term volatility warrants patience, the analyst said.

However, LG Electronics may see near-term volatility with the three-month lock-in period ending today, said Dr. Ravi Singh, Chief Research Officer at Master Capital Services. In Q2 FY26, the company reported a 27 percent YoY decline in net profit, despite a 1 percent increase in revenue.

The analyst however explained that from a long-term market perspective, the outlook remains constructive. The stock’s strong IPO response and premium listing highlighted investor confidence in LG’s brand strength, market leadership, and India-focused strategy, he said.

"Because of premiumization, growing appliance penetration and export opportunities, management has consistently positioned India as an important growth market. Importantly, LG is gradually expanding beyond pure hardware by building non-hardware revenue streams such as subscriptions, digital platforms, and webOS-based services, which can structurally improve margins and earnings over time. Therefore, LG Electronics continues to be a strong long-term investment option supported by structural demand factors despite short-term volatility," Singh said.

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