In a historic stock market debut, LG Electronics India Ltd surged over 50% on its first day of trading, marking one of the most remarkable IPO performances in recent years. The company’s shares opened at a strong premium and rallied to an intra-day high of ₹1,749 on the NSE, compared to the issue price of ₹1,140.
This phenomenal performance catapulted LG Electronics India’s market capitalization to over $13 billion, making it more valuable than its South Korean parent, LG Electronics Inc., which stands at approximately $9.4 billion. The Indian subsidiary is now nearly 40% more valuable than its global parent — a rare feat in global corporate history.
Record-Breaking Market Debut
Investor enthusiasm for LG Electronics India’s IPO was overwhelming, with the listing delivering the best first-day gain for an IPO worth over ₹10,000 crore since Coal India’s 40% surge in 2010.
Analysts attribute this stellar debut to strong demand from both institutional and retail investors, reflecting widespread optimism about India’s fast-growing consumer electronics market.
Market experts note that while global peers such as Maruti Suzuki and ITC took years to outpace their foreign parents in valuation, LG Electronics India achieved the milestone on day one.
Valuation Premium Reflects India’s Consumer Growth Potential
LG Electronics India’s IPO debut also highlights the valuation premium often seen among Indian subsidiaries of multinational corporations. The stock trades at nearly 43 times one-year forward earnings, compared to its parent’s 8.4 times, according to Bloomberg data.
This sharp difference underscores investor confidence in India’s consumption-driven growth story, where expanding middle-class income, rising demand for home appliances, and digital adoption continue to fuel sectoral growth.
Financial Performance: Strong Margins and Profitability
The valuation gap is further supported by LG Electronics India’s superior profitability metrics.
- For FY25, LG Electronics India reported a net profit of $248 million on $2.75 billion in revenue.
- In comparison, its parent company LG Electronics Inc. posted a net profit of $476 million on $63.2 billion in revenue for the 12 months ended June 2025, with an EBITDA margin of 7.2%.
Despite generating only a fraction of the parent’s revenue, the Indian subsidiary’s higher margins and robust demand outlook justify its valuation premium.
Implications for India’s IPO and Consumer Market
The resounding success of LG Electronics India’s listing reinforces India’s position as a high-growth market offering premium valuations to global corporations. It also highlights the maturing investor appetite for consumer-centric, fundamentally strong brands.
Market observers suggest this could inspire other multinational companies to list their Indian units, unlocking local investor participation and further deepening India’s capital markets.
In the broader context, LG’s debut underscores a significant trend — India’s domestic subsidiaries are emerging as growth engines, often outpacing their global parents in both valuation and profitability.
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
Investments in securities markets are subject to market risks. Please read all related documents carefully before investing.