LG Electronics India shares surge 50% on market debut after bumper IPO
LG Electronics India is targeting a valuation of up to 774 billion rupees ($8.71 billion) in its long-delayed initial public offering, tapping into a vibrant IPO market with one of India’s largest offerings so far this year.
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Shares of LG Electronics India jumped 50% in its market debut on Tuesday after the company’s initial public offering saw the strongest demand for an IPO in India since 2008, led by institutional investors.
Its shares opened at 1,710 rupees. The IPO was priced at the top end of the 1,080 rupees to 1,140 rupees per capita band, raising 116 billion rupees ($1.3 billion) and was oversubscribed more than 54 times, attracting bids worth about 4.4 trillion rupees, or about $50 billion. change data revealed.
This is the most subscribed major Indian IPO since Reliance Power’s listing in 2008, PRIME Database’s Pranav Haldea told CNBC. It was in high demand from qualified institutional buyers who offered 166 times its allotted portion. The individual investor section received 3.55 times more demand.
The IPO was structured as an offer for sale in which parent company LG Electronics sold 101.8 million shares; No new shares were issued. It was managed by a consortium of international and domestic betting companies, including Morgan Stanley, JP Morgan, Axis Capital, BofA Securities and Citigroup Global Markets India.
The shares started trading on the National Stock Exchange of India and BSE on Tuesday.
This becomes the second major South Korean company to enter Indian markets in about a year, after Hyundai Motor India’s listing in October 2024.
LG Electronics India is a unit of LG Electronics in South Korea. It designs, manufactures and markets a wide range of consumer electronics and home appliances such as refrigerators, air conditioners, washing machines, televisions and smart home devices.
“LG Electronics India stands out as the listed appliance player with the widest offerings and is popular across most of the product categories where they are present,” said SEBI-listed independent equity research analyst Himanshu Dugar.
India’s electronics and home appliances market is projected to grow, according to Redseer Strategy Consultants Almost double from about $75 billion in 2024, to about $130 billion to $150 billion by 2029. “Accordingly, we expect LG Electronics India, as the market leader, to benefit from these headwinds,” Dugar said.
India continues to be among the busiest IPO markets in the world this year. EY’s latest global report It shows that the country raised $7.2 billion by making 146 offerings in the third quarter. This brought the nine-month figure to 254 deals worth $11.8 billion; This demonstrated the depth of local capital markets and IPO returns were at 17.5%.
—CNBC’s Lim Hui Jie contributed to this report.
