- LG Balakrishnan & Bros shares surged due to confusion with LG Electronics IPO
- LG Balakrishnan stock hit a 52-week high of Rs 1,600 on mistaken buying
- LG Balakrishnan is an unrelated auto components firm based in Coimbatore
LG Balakrishnan & Bros Ltd. became an unlikely beneficiary of an investor rush on Tuesday as traders mistook the scrip for LG Electronics, which listed on bourses with a premium of over 50%, Economic Times reported, citing brokers.
As investors rushed to buy LG Electronics shares, they ended up mistakenly adding buy calls for the LG Balakrishnan counter. As a result, the stock surged to a 52-week high of Rs 1,600 in early trade, which accounted for a 15% gain over its closing price of Rs 1,367.60 on Monday.
LG Balakrishnan is a completely unrelated stock to LG Electronics. Based in Coimbatore, Tamil Nadu, the company is an auto components manufacturer, which produces chains, sprockets and metal formed parts for automotive applications.
LG Balakrishnan's market capitalisation stands at around Rs 4,300 crore compared to LG Electronics' whopping Rs 1.14 lakh crore.
However, as traders soon got hold of the error, LG Balakrishnan stock eventually started to tumble, with the scrip ending the way with a fall of almost 2%.
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