The company’s wide distribution network and premium brand positioning, according to Prabhudas Lilladher, guarantee market leadership in all categories.
As investors flocked to the nation’s most sought-after initial public offering (IPO) since 2008, LG Electronics India jumped 50.4% in its trading debut on October 14 and valued the business at $13.07 billion, surpassing the market capitalization of its South Korean parent company of about $10 billion.
Following its listing at Rs 1,710.1 on the National Stock Exchange of India, shares of LG Electronics’ Indian division increased to Rs 1,714.90.
Rs 1,140 was the issue price
With a “buy” recommendation, brokerage Prabhudas Lilladher began covering the company and set a price objective of Rs 1,780, indicating a 4% increase from the current market price.
The company’s wide distribution network and premium brand positioning, according to Prabhudas Lilladher, guarantee market leadership in all categories.
It projects that capacity expansions, AMC and B2B development, and a push for local sourcing would drive growth in sales, EBITDA, and profit from FY25 to FY28 at rates of 9.9%, 10.9%, and 9.3%, respectively.
Investor optimism in India’s consumer demand and industrial development potential was shown last week when the company’s $1.3 billion initial public offering (IPO) was quickly scooped up, with bids totaling an incredible $50 billion.
Due to the investor frenzy, it became the most subscribed billion-dollar offering in over twenty years, surpassing interest in high-profile listings including Zomato’s $1.3 billion float in 2021, Paytm’s $2.5 billion debut, and Life Insurance Corp of India’s $2.7 billion issuance in 2022.
The company’s valuation exceeded its $8.73 billion objective and places it ahead of its counterparts that are listed in India, such as Havells ($10.42 billion), Voltas ($5.16 billion), and Whirlpool ($1.67).
By contrast, on October 14, Tata Capital began at Rs 330, 1.2% higher than the $1.75 billion IPO issue price, and remained quiet the rest of the day.