By Agence France-Presse
Shares in LG Electronics India soared 50 percent on their market debut on Tuesday, after raising more than $1 billion in the country’s third-biggest initial public offering of the year.
The South Korean appliance maker’s India unit opened at 1,710.1 rupees on the National Stock Exchange — compared with a 1,140 rupees issue price — before paring some of the gains in early trading.
India’s stock market has underperformed compared with Asian rivals this year, but a vast retail investor base — in the world’s most populous country — and ample domestic liquidity still make it a key fundraising hub.
Start-ups and companies have raised more than $12 billion from IPOs so far this year, stock exchange data shows, and that is expected to rise over the next three months.
But even by the standards of the red-hot Indian IPO market, the sale by LG’s local unit stands out.
The offer, which involved the sale of a little more than 71 million shares, received bids for more 3.8 billion shares — making it the most-subscribed big Indian IPO in nearly two decades.
The firm — which commands a significant market share in several high-end home appliance categories, including washing machines and refrigerators — listed at the top end of its IPO price of 1,080-1,140 rupee band, valuing it at $8.7 billion.
Analysts say cheap valuations, LG’s reach across middle-class Indian homes and the company’s superior margins made it attractive to investors.
The bumper listing also highlights India’s rapid rise as an emerging manufacturing hub for tech giants looking to diversify production.
Companies including Apple have sought to make the world’s fifth-largest economy a key component of their global manufacturing operations, as they seek to insulate themselves against geopolitical friction between the United States and China.
LG’s two existing plants in India accounted for more than 85 percent of sales in the 2024-25 fiscal year, according to estimates by financial services firm Axis Securities.
The South Korean giant also started construction of a third manufacturing facility in southern India earlier this year, pushing spending to about $600 million over the next four years.
The company says the investment “underscores India’s potential as a critical hub” within its global supply chain.—Agence France-Presse
