LG Electronics India has recorded the best stock market debut among Indian IPOs, exceeding Rs 10,000 crore, with shares closing 48.2% higher than the issue price on October 14. The company’s Rs 11,607-crore IPO outperformed several of India’s largest public issues in recent years, including Coal India, LIC, Hyundai India, Paytm, and GIC RE.

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Oversubscription Reflects Strong Investor Demand Brokerage Coverage and Ratings

Data from Bloomberg shows that among the top 10 IPOs above Rs 10,000 crore, LG Electronics India’s gains were the highest on record. Previously, Coal India, which was listed in 2010, held the top spot with a 39.8% gain, followed by Swiggy (16.9%) and HDB Financial Services (13.6%). In contrast, high-profile listings such as Paytm (-27.4%), Reliance Power (-17.3%), LIC (-7.8%), Hyundai India (-7.2%), and Tata Capital (1.4%) opened below or marginally above their issue prices.

Oversubscription Reflects Strong Investor Demand

The IPO was oversubscribed 54 times, making it the most bid-for billion-dollar issue since 2008. Shares were listed at Rs 1,710.1 on the NSE, representing a 50% premium to the issue price of Rs 1,140 per share. The stock eventually settled at Rs 1,682.8, giving LG Electronics India a market capitalisation of Rs 1.14 lakh crore. This valuation surpassed that of its South Korean parent, LG Electronics, marking a historic milestone for the company in the Indian market.

The overwhelming investor response underscores strong confidence in the company’s business model, brand presence, and growth potential. Analysts attribute the success to LG Electronics India’s position in the consumer electronics and appliances sector, combined with its ability to leverage India’s growing demand for premium products.

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Brokerage Coverage and Ratings

The stellar listing has triggered positive brokerage attention:

Nomura has initiated coverage with a ‘buy’ rating and a target price of Rs 1,800 per share. The firm highlighted India’s favorable demographics and the secular trend of premiumisation across consumer categories as key growth drivers. Nomura expects post-tax ROE of 31% and ROIC of 56% by FY28, and anticipates that the company will trade at the midpoint of its 30–45x earnings band.
Other brokerages, including Motilal Oswal and Prabhudas Lilladher, also initiated coverage with ‘buy’ calls and price targets in the Rs 1,780–1,800 range. They cited LG Electronics India’s strong brand leadership, extensive distribution network, and localisation-driven strategy as major competitive advantages.

These buy recommendations reflect confidence in the company’s long-term growth prospects and its ability to maintain market leadership in premium consumer electronics.

Significance for the Indian Stock Market

The debut has propelled LG Electronics India into the ranks of the country’s most valuable consumer goods companies. Analysts say this IPO demonstrates renewed investor appetite for consumer-facing businesses that combine premium brand positioning, strong execution, and scale.

The strong listing is also significant for the broader IPO market. Among billion-dollar-plus IPOs, LG Electronics India now holds the record for the highest listing gains, reflecting a positive sentiment towards well-managed, high-quality consumer brands.

With its current market valuation surpassing the parent company, LG Electronics India’s debut highlights the potential for large Indian consumer companies to attract global attention and capital.

The IPO’s success could encourage other major consumer-facing businesses to consider public listings, potentially revitalising investor interest in the sector.

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