Investor blunder: LG IPO confusion sends wrong stock soaring, then crashing

A scramble to buy shares of LG Electronics India on its market debut Tuesday led to a bizarre case of mistaken identity — with investors accidentally pouring money into an entirely different company: LG Balakrishnan and Bros.

As trading opened, retail enthusiasm surged for LG Electronics India, expected to deliver a strong listing pop. But in the rush, some investors reportedly punched in orders for LG Balakrishnan, a Coimbatore-based auto parts maker, founded in 1937 — a stock unrelated to the electronics giant.

The confusion sparked unusual activity. LG Balakrishnan stock surged nearly 15% in early trades, hitting ₹1,600 on the NSE, well above its previous close of ₹1,390. Volumes exploded — 684,105 shares were traded across NSE and BSE, dwarfing the two-week daily average of just 31,400.

But the gains didn’t last. As investors realized the ticker mix-up, the stock reversed sharply, ending the day 1.6% lower at ₹1,367.60.

“Some buy orders were likely punched in error,” said a Mumbai-based broker. “It’s not uncommon when a high-profile IPO hits the market, and people rush in.”

Cases of mistaken identity are no stranger to markets. Tata Motors and Tata Motors DVR have long been a source of confusion during news-heavy days. Globally, one of the most infamous incidents came during the early days of the pandemic, when traders confused Zoom Video Communications with the defunct Chinese company Zoom Technologies, causing the latter's stock to skyrocket by 1,800%, before U.S. regulators intervened.

LG Balakrishnan, a relatively low-profile stock with a market cap of ₹4,372 crore, was briefly caught in the crosshairs of investor excitement — and error.