LG Electronics India shares soar 50% in IPO debut

LG Electronics India surged 50% in its trading debut on October 14, reaching a valuation of US$13.1 billion and surpassing its South Korean parent company’s market cap.

Shares opened at 1,710.10 rupees (US$20.52) on the National Stock Exchange of India and climbed to 1,714.90 rupees, well above the IPO price of 1,140 rupees (US$13.68).

The company’s US$1.3 billion IPO was fully subscribed within hours last week, attracting bids worth US$50 billion.

This marks the most subscribed billion-dollar IPO in India since 2008, outpacing demand seen in recent high-profile listings such as LIC, Paytm, and Zomato.

LG Electronics India’s valuation now exceeds that of local competitors including Whirlpool, Voltas, and Havells.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

LG India’s IPO pop masks valuation questions that public filing details will answer

A 50.4% debut pop values LG Electronics India at $13.07 billion. That sits above Havells at $10.42 billion and Voltas at $5.16 billion. Investors need the Red Herring Prospectus (RHP) for revenue growth, operating margins, and capital expenditure (capex). They also need risk details on raw materials, discounting, and financing rules.
Missing pieces include royalty or related-party payments to LG Electronics in South Korea, the parent. Investors also need import share versus local production under India’s Production-Linked Incentive (PLI) scheme, a government program that links subsidies to output. Use of primary proceeds from the $1.3 billion offer matters. These details decide whether the gap with the parent, $13.07 billion versus a lower market cap, can hold.

Consumer durable demand surge creates opening for point-of-sale (POS) financing players

Consumer durable loans in India reached $1.67 billion in 2024 with 19% compound annual growth rate (CAGR) toward $4.73 billion by 2030. Fintechs and Non-Banking Financial Companies (NBFCs) can win share by embedding instant credit at brand stores or large-format retail checkouts.
Buy now, pay later (BNPL) lifts average order values by 30% to 50% and now reaches physical retail, travel, and healthcare. Digital lending platforms could reach 5% of retail loans by fiscal year 2028 (FY28), up from 2.5% in fiscal year 2024 (FY24), at 40% CAGR. Paytm and PhonePe, India-based digital payments platforms, use AI for fast credit checks for no-cost Equated Monthly Installments (EMIs).