Business
LG Electronics India’s stellar 50% premium listing: $13 billion giant more valuable than South Korean parent! Top 5 takeaways – The Times of India
LG Electronics India on Tuesday had a stellar listing on the stock exchanges NSE and BSE, debuting at a whopping premium of 50% above its share price issue. Trading commenced at Rs 1,715 on BSE and Rs 1,710.10 on NSE, considerably above the Rs 1,140 per share issue price, resulting in day-one returns exceeding 50% for investors.The Rs 11,607-crore public offering consisted solely of shares divested by LG Electronics Inc. The issue garnered overwhelming interest, securing 54-fold oversubscription. The qualified institutional buyers’ segment witnessed 166 times subscription, whilst retail investors’ portion achieved 3.5 times subscription.Before the official listing, the shares attracted strong demand in the grey market, trading at a 31% premium, reflecting strong investor confidence.The debut takes place in India’s second-busiest IPO quarter, though recent major listings, including WeWork India and Tata Capital, experienced relatively modest market debuts.So why is the LG Electronics India listing important and what does it mean for the IPO market in India?
LG Electronics’ Stellar listing
The IPO performance stands as the most impressive among Indian offerings exceeding one billion dollars since 2021, placing the organisation ahead of rivals such as Whirlpool, Voltas and Havells.The rise pushed the organisation’s market valuation beyond other listed Indian consumer durables firms, including Whirlpool of India ($1.7 billion), Voltas ($5.8 billion) and Havells India ($10.4 billion).
LG Electronics India more valuable than South Korean parent company!
Interestingly, LG’s market capitalisation reached Rs 1.16 lakh crore (approximately $13.13 billion), surpassing its South Korean parent LG Electronics Inc’s value of $8-9 billion on the Seoul exchange!According to experts, the company’s success stems from its sensible valuations, market leadership position and clear earnings prospects. LG holds a dominant position in India’s consumer durables sector with its diverse range of home appliances, TVs and ACs, consistently outperforming competitors in profitability and expansion, according to an ET report.Ambit Capital assigned a Buy rating with a 12-month target of Rs 1,820, noting several positive factors supporting the company’s outlook, including localisation, premium product focus, increased exports and GST-driven market recovery.“LG’s under-penetration across categories leaves ample room for growth. The Six City plant will double capacity and boost exports by 4 percentage points by FY28E,” the brokerage said. Their forecast indicates 11% revenue and 13% EBITDA CAGR through FY25-28.The IPO pricing proved appealing to investors. At 35x FY25 earnings, LG presented better value compared to listed competitors trading at 45-60x multiples. Additional factors strengthening investor trust included its debt-free status, consistent ROE exceeding 30%, and stable EBITDA margins above 10%.
LG Stands Tall In Rs 10,000 crore IPO Club
The listing proved exceptionally rewarding for investors and set a new benchmark among India’s Rs 10,000-crore-plus IPOs, where such issues typically struggle to maintain momentum post-listing. LG India recorded the highest day-one premium of 50.4% amongst IPOs exceeding Rs 10,000 crore.Historical data of significant Indian listings reveals diverse outcomes. Coal India’s public offering in 2010, which raised Rs 15,199 crore, remains amongst the successful ventures, beginning 40% higher.
How above Rs 100 billion IPOs fares on listing
In contrast, Reliance Power’s 2008 issue started 17% lower, while Paytm’s Rs 18,300-crore offering in 2021 fell 27% at listing. State-backed enterprises encountered difficulties too, with LIC’s Rs 20,557-crore issue opening 7.8% lower and GIC Re’s Rs 11,257-crore offering starting with a 4.6% decline.Considering these precedents, LG India’s market debut stands out amongst substantial Indian IPOs, reflecting both scale and strong investor confidence.
More IPOs loading – what LG’s stellar listing means
The impressive first-day performance serves as a positive indicator for upcoming Indian corporate listings, particularly following Tata Capital Ltd.’s modest 1.4% increase during its debut in the nation’s largest initial public offering this year.Over the past two years, India has emerged as one of the world’s most active markets for public listings, attracting international investors keen to participate in its rapidly expanding consumer market.October is poised to set a record for Indian IPOs, with anticipated proceeds exceeding $5 billion. The market has closely monitored both LG and Tata’s offerings as indicators of stability in one of the world’s most vibrant IPO markets.
Record IPOs Set for October
According to Bloomberg data, these recent offerings have pushed the total IPO proceeds in India beyond $15 billion this year. The surge in significant offerings has generated confidence that the total could exceed last year’s milestone of nearly $21 billion. Jefferies Financial Group previously indicated that India’s primary market is positioned for substantial growth following a quiet start, projecting fundraising of up to $18 billion in the latter half of the year.
IPOs a Hit Even As Nifty, Sensex Still Below Highs
Amidst international market fluctuations, India maintains its status as the second-largest IPO market globally, following the United States. This position is supported by sound economic fundamentals, improved regulatory framework, and increased participation from retail investors.Although foreign investors have been consistently selling in the secondary market, they maintain substantial confidence in India’s leading growth narrative by participating as committed anchor investors in companies’ initial public offerings.The Indian IPO sector demonstrates exceptional vitality, generating approximately 1% of the nation’s GDP, R. Venkataraman, Managing Director of IIFL Capital told ET recently.The prevailing robust valuations and conducive market environment are allowing business owners to secure capital for expansion whilst partially realising their investments.Experts are of the view that companies at their listing stage are typically in their early growth phase, potentially offering higher returns compared to established listed entities, according to Shah. Additional advantages of IPOs include minimal price impact from bulk purchases and opportunities to invest in unique business models at competitive valuations.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
Business
Private sector data: Over 2 lakh private companies closed in 5 years; govt flags monitoring for suspicious cases – The Times of India
NEW DELHI: The government on Monday said that over the past five years, more than two lakh private companies have been closed in India.According to data provided by Minister of State for Corporate Affairs Harsh Malhotra in a written reply to the Lok Sabha, a total of 2,04,268 private companies were shut down between 2020-21 and 2024-25 due to amalgamation, conversion, dissolution or being struck off from official records under the Companies Act, 2013.Regarding the rehabilitation of employees from these closed companies, the minister said there is currently no proposal before the government, as reported by PTI. In the same period, 1,85,350 companies were officially removed from government records, including 8,648 entities struck off till July 16 this fiscal year. Companies can be removed from records if they are inactive for long periods or voluntarily after fulfilling regulatory requirements.On queries about shell companies and their potential use in money laundering, Malhotra highlighted that the term “shell company” is not defined under the Companies Act, 2013. However, he added that whenever suspicious instances are reported, they are shared with other government agencies such as the Enforcement Directorate and the Income Tax Department for monitoring.A major push to remove inactive companies took place in 2022-23, when 82,125 companies were struck off during a strike-off drive by the corporate affairs ministry.The minister also highlighted the government’s broader policy to simplify and rationalize the tax system. “It is the stated policy of the government to gradually phase out exemptions and deductions while rationalising tax rates to create a simple, transparent, and equitable tax regime,” he said. He added that several reforms have been undertaken to promote investment and ease of doing business, including substantial reductions in corporate tax rates for existing and new domestic companies.
Pakistan’s textile exports surged to $6.4 billion during the first four months of the 2025-26 fiscal year, marking the highest trade volume for the sector in this period.
According to the Pakistan Bureau of Statistics (PBS), value-added textile sectors were key contributors to the growth.
Knitwear exports reached $1.9 billion, while ready-made garments contributed $1.4 billion.
Significant increases were observed across several commodities: cotton yarn exports rose 7.74% to $238.9 million, and raw cotton exports jumped 100%, reaching $2.6 million from zero exports the previous year.
Other notable gains included tents, canvas, and tarpaulins, up 32.34% to $53.48 million, while ready-made garments increased 5.11% to $1.43 billion.
Exports of made-up textile articles, excluding towels and bedwear, rose 4.17%, totaling $274.75 million.
The report also mentioned that the growth in textile exports is a result of improved global demand and stability in the value of the Pakistani rupee.
UK investment bank Peel Hunt has given some support to under-pressure Chancellor Rachel Reeves over last week’s Budget as it said efforts to boost the London market and invest in UK companies were “positive steps”.
Peel Hunt welcomed moves announced in the Budget, such as the stamp duty exemption for shares bought in newly listed firms on the London market and changes to Isa investing.
It comes as Ms Reeves has been forced to defend herself against claims she misled voters by talking up the scale of the fiscal challenge in the run-up to last week’s Budget, in which she announced £26 billion worth of tax rises.
Peel Hunt said: “Following a prolonged period of pre-Budget speculation, businesses and investors now have greater clarity from which they can start to plan.
“The key measures were generally well received by markets, particularly the creation of additional headroom against the Chancellor’s fiscal rules.
“Initiatives such as a stamp duty holiday on initial public offerings (IPOs) and adjustments to the Isa framework are intended to support UK capital markets and encourage investment in British companies.
“These developments, alongside the Entrepreneurship in the UK paper published simultaneously, represent positive steps toward enhancing the UK’s attractiveness for growth businesses and long-term investors.”
Ms Reeves last week announced a three-year stamp duty holiday on shares bought in new UK flotations as part of a raft of measures to boost investment in UK shares.
She also unveiled a change to the individual savings account (Isa) limit that lowers the cash element to £12,000 with the remaining £8,000 now redirected into stocks and shares.
But the Chancellor also revealed an unexpected increase in dividend tax, rising by 2% for basic and higher rate taxpayers next year, which experts have warned “undermines the drive to increase investing in Britain”.
Peel Hunt said the London IPO market had begun to revive in the autumn, although listings activity remained low during its first half to the end of September.
Firms that have listed in London over recent months include The Beauty Tech Group, small business lender Shawbrook and tinned tuna firm Princes.
Peel Hunt added that deal activity had “continued at pace” throughout its first half, with 60 transactions announced across the market during that time and 10 active bids for FTSE 350 companies, as at the end of September.
Half-year results for Peel Hunt showed pre-tax profits jumped to £11.5 million in the six months to September 30, up from £1.2 million a year earlier, as revenues lifted 38.3%.
Peel Hunt said its workforce has been cut by nearly 10% since the end of March under an ongoing savings drive, with full-year underlying fixed costs down by around £5 million.
Steven Fine, chief executive of Peel Hunt, said: “The second half has started strongly, with the group continuing to play leading roles across both mergers and acquisitions and equity capital markets mandates.”
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