LG Electronics shares jump 51% from IPO price: Further gains ahead or profit-taking looms?
LG Electronics shares continued their strong momentum for a second consecutive day following their blockbuster debut on Tuesday, October 14. On the NSE, shares debuted at ₹1,710.10, reflecting a 50% premium over the issue price, and closed at ₹1,689.90, up 48.23%. On the BSE, shares opened at ₹1,715 and peaked at ₹1,736.40 before closing at ₹1,689.40, marking a gain of 48.19% from the issue price of ₹1,140.
The shares began trading at ₹1,715, reflecting a surge of 50.43% from the original issue price on the BSE. During the day, the stock climbed 52.31% to reach ₹1,736.40. By the end of the trading session, the company's shares closed at ₹1,689.40, marking an increase of 48.19%, News.Az reports, citing foreign media.
The company's market capitalisation was recorded at ₹1,14,671.81 crore.
The initial public offering (IPO) of LG Electronics India was oversubscribed by 54.02 times on the final day of bidding, spurred by strong participation from institutional investors.
Mohit Gulati, CIO and managing partner of ITI Growth Opportunities Fund, believes that the sharp 50% pop in LG Electronics' share price is a reflection of deep investor confidence in the company’s fundamentals and future readiness.
“Interestingly, beyond the strong Institutional & retail participation, it was the employee portion that witnessed overwhelming subscription — and rightly so. The people of a company are its true essence. The value they’ve helped create over years of hard work and loyalty is now reflecting back on them. This isn’t just a financial reward — it’s an emotional one that supersedes all,” he added.
LG Electronics' IPO consisted entirely of an Offer For Sale (OFS) of 10.18 crore shares, which accounts for approximately 15% of the stake, offered by the parent company based in South Korea.
This marks the second South Korean firm to enter the Indian stock market, following Hyundai Motors India Ltd's listing in October of the previous year. The LG Electronics IPO, valued at ₹11,607 crore, had a price band set between ₹1,080 and ₹1,140 per share.
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