LG Electronics India shares surge 50% on market debut after bumper initial public offering

LG Electronics India's shares surged 50% connected their marketplace debut Tuesday, aft the company's archetypal nationalist offering saw the strongest request for an Indian IPO since 2008, led by organization investors.

Its shares opened astatine 1,710 rupees. The IPO was priced astatine the apical extremity of the 1,080 rupee to 1,140 rupee apiece band, fetching 116 cardinal rupees ($1.3 billion), and was oversubscribed much than 54 times, attracting bids worthy astir 4.4 trillion rupees oregon astir $50 billion, exchange information revealed.

This was the astir heavy subscribed large Indian IPO since Reliance Power's listing successful 2008, PRIME Database's Pranav Haldea told CNBC. It saw monolithic request from qualified organization buyers, who bid 166 times their allotted portion. Retail capitalist information was oversubscribed 3.55 times.

The IPO was structured arsenic an connection for merchantability — nary caller shares were issued — with genitor LG Electronics selling 101.8 cardinal shares. It was managed by a consortium of planetary and home bookrunners, including Morgan Stanley, J.P. Morgan, Axis Capital, BofA Securities, and Citigroup Global Markets India.

Shares began trading Tuesday connected the National Stock Exchange of India arsenic good arsenic the BSE.

This is the 2nd large South Korean institution that has tapped Indian markets successful astir a year, aft Hyundai Motor India's listing successful October 2024.

LG Electronics India is simply a portion of South Korea's LG Electronics. It designs, manufactures, and markets a wide scope of user electronics and location appliances specified arsenic refrigerators, aerial conditioners, washing machines, televisions, and astute location devices.

"LG Electronics India stands retired arsenic the listed appliance subordinate with the widest offerings and are fashionable successful astir of the merchandise categories they are contiguous in," said Himanshu Dugar, a SEBI-registered autarkic equity probe analyst.

According to Redseer Strategy Consultants, India's electronics and appliances marketplace is projected to almost treble from astir $75 cardinal successful 2024 to astir $130 cardinal to $150 cardinal by 2029. "Accordingly, we expect LG Electronics India, arsenic the marketplace leader, volition payment from these tailwinds," said Dugar.

India continues to fertile among the world's busiest IPO markets this year. EY's latest planetary report shows the state logged 146 offerings successful the 3rd quarter, raising $7.2 billion. That brought the nine-month tally to 254 deals worthy $11.8 billion, underscoring the extent of its home superior markets, with IPO returns lasting astatine 17.5%.

—CNBC's Lim Hui Jie contributed to this report.