LG Electronics India had an impressive stock market debut, listing at a 50 % premium over its IPO price on the National Stock Exchange (NSE). This followed a subscription rate of 54.02 times for its issue from October 7 to 9 in the primary market.
LG Electronics shares debut at 50%
Shares of LG Electronics India debuted at Rs 1,710.10 each on the NSE, reflecting a significant premium of 50.01 %. The issue, valued at Rs 11,607 crore, had a price range of Rs 1,080 to Rs 1,140 per share.
On the BSE, the shares listed at Rs 1,715 each, resulting in a premium of 50.44 %. After the shares listed, the company’s market capitalization stood at Rs 1,16,409.47 crore. The IPO’s debut exceeded expectations in the grey market, which had anticipated a 40 % listing gain.
Should you buy, sell, or hold LG shares?
“LG Electronics India is a strong long-term investment. It represents India’s rapidly growing, value-focused home appliances market, where the company is the leader in several categories. The valuation priced compared to the industry average of similar listed companies, which justifies the premium listing.
Short-term growth looks promising, thanks to the expected GST 2.0 reforms that could improve consumer affordability and boost volume growth in the coming quarters,” said Mehta Equities.
Read also: Bengaluru Suicide Case: Class 12th Boy Student dies after falling from school building