LG Electronics India Share Price Extends Gain After Successful D-Street Debut

The shares of LG Electronics India Ltd. have opened with strong gains in trade on Wednesday, with the stock surging up to 2%.

LG Electronics is currently trading at Rs 1,718, which amounts to a 1.66% gain compared to Tuesday's closing price of Rs 1,689. The stock opened at Rs 1,726, recording an intraday high of Rs 1,728.

The gains come on the back of LG Electronics' successful debut on the bourses, with the stock listing with a 50% premium on both the NSE and the BSE.

LG Electronics shares opened at Rs 1,710 on the NSE, compared to the issue price of Rs 1,140.

The attractive premium meant that the market capitalisation of LG Electronics' India arm surpassed the value of its parent company, Reuters reported.

LG Electronics India also became the most heavily subscribed major Indian IPO since Reliance Power’s listing in 2008.

Multiple brokerages including Nomura, Motilal Oswal and Ambit, have initiated coverage on LG Electronics India, with strong buy calls. These brokerages are bullish on the company's foray into the mass market segment.

In total, ten brokerages have already initiated coverage on LG Electronics, with all of them issuing buy calls, with an average 12-month target price of Rs 1,814, indicating an upside of around 7%.

There are more tailwinds for LG Electronics going forward, especially after key new product launches on Oct. 14., including a double door refrigerator with frost-free technology, a fully automatic top load washing machine and a room air conditioner reducing energy consumption.

This is why LG Electronics continues to garner strong investor interest, some of it even led to many traders mistaking LG Balakrishnan & Brothers for LG Electronics on Tuesday, leading to an unprecedented rally at open.