LG Electronics India is now more valuable than its Korean parent

LG Electronics India surged 50.4% in its trading debut on October 14 and valued the company at $13.07 billion, eclipsing its South Korean parent’s market capitalisation of nearly $10 billion, as investors piled into the country’s most bid-for IPO since 2008.

Shares of the Indian arm of LG Electronics rose to Rs 1,714.90 after it listed at Rs 1,710.1 on the National Stock Exchange of India. Its issue price was at Rs 1,140. Brokerage Prabhudas Lilladher started coverage on the stock with “buy” rating and gave a price target of Rs 1,780, which implies up to 4% upside from current market price.

Prabhudas Lilladher says company’s extensive distribution network, premium brand positioning ensures market leadership across categories. It sees FY25–28 revenue, EBITDA, profit to grow at 9.9%, 10.9%, and 9.3%, respectively, led by capacity additions, AMC and B2B expansion, local sourcing push. The company’s $1.3 billion IPO was snapped up within hours of opening last week, drawing bids worth a staggering $50 billion, underscoring investor confidence in India’s consumer demand and manufacturing growth prospects.

The investor euphoria made it the most subscribed billion-dollar offering in nearly two decades, eclipsing interest seen in high-profile listings such as Life Insurance Corp of India’s $2.7 billion issue in 2022, and Paytm’s $2.5 billion debut and Zomato’s $1.3 billion flotation in 2021. The company’s valuation was higher than its target of $8.73 billion and sets it ahead of its India-listed peers, with Whirlpool valued at about $1.67 billion, Voltas at $5.16 billion, and Havells at $10.42 billion. In comparison, Tata Capital, opened at Rs 330, a 1.2% premium to $1.75-billion IPO issue price, on October 14 and stayed muted through the day.