LG Electronics shares shine on market debut; Dharmesh Kant sees strong upside ahead

Shares of LG Electronics India Ltd made a strong debut on Tuesday, listing at Rs 1,715 apiece on BSE, a premium of 50.44 per cent to its issue price of Rs 1,140 per share. The stock later touched a day high of Rs 1,736.40, up 52.32 per cent from the initial public offering (IPO) price.

The company's initial share sale, which was open for subscription between October 7 and 9, received a strong investor response. Priced in the band of Rs 1,080–1,140 per share, the IPO raised Rs 11,607 crore through an offer-for-sale (OFS) of 10.18 crore equity shares by its South Korean parent, LG Electronics Inc.

Market expert Dharmesh Kant, Head of Equity Research at Cholamandalam Securities, said the issue was attractively priced and offers strong potential for long-term investors. "LG Electronics has been fairly priced. They have left enough on the table for investors. If the stock dips about 20 per cent from the listing-day highs, it would be a good entry point from an investment perspective," he told Business Today.

Kant added that LG Electronics India's business spans both B2C and B2B segments, with strong growth prospects supported by its upcoming compressor manufacturing plant. "The company will likely be rerated over time. From a two-year perspective, this stock can be a doubler, considering peer valuations," he noted.

Established in 1997, LG Electronics India manufactures and distributes a wide range of home appliances and consumer electronics across India and exports to global markets. Its offerings include air conditioners, washing machines, televisions and refrigerators, along with installation, repair and maintenance services.

The successful listing marks one of the strongest debuts for a large-cap IPO in 2025.