LG Electronics shares in focus as lock-in expiry frees up 44 crore shares: Here's how they performed since IPO

Synopsis

LG Electronics India shares are in focus as a six-month lock-in period ends today, freeing over 44 crore shares for trade. The stock, which listed at a premium in October 2024, has seen volatility since its debut. Analysts maintain a positive outlook, citing market leadership and growth plans.

The shares of LG Electronics India will remain in focus on Wednesday as the six-month shareholder lock-in period for the stock comes to an end today, freeing up more than 44 crore shares for trade, following its strong listing in October last year.

LG Electronics India’s 441 million shares, or 65% of its total outstanding shares, will become eligible for trade once the lock-in period expires on April 15, according to Nuvama Alternative & Quantitative Research. The said number of shares will be cumulatively worth more than Rs 66,194 crore, based on the stock’s previous closing price of Rs 1,501 per share.

It is important to note that expiry of lock-in period does not automatically imply that all these shares will be offloaded in the market immediately. The expiry of the lock-in period simply means that these shares can now be traded. Typically, stocks see heightened volatility after the lock-in expiry.

How have LG Electronics India shares performed since listing?

LG Electronics India shares had made a bumped market debut in October 2024, listing at Rs Rs 1,710.10 per share on the NSE after its Rs 11,607-crore initial public offering (IPO) garnered more than 54 times subscription during its three days of public bidding. The listing marked a 50% premium over its IPO price of Rs 1,140 apiece.

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However, the stock then failed to hold on to the momentum. Following its listing, it only rose 2% to hit a 52-week high of Rs 1,749 apiece in the same month, and then began to slide. The stock declined more than 25% from the record high level in less than six months to hit a 52-week low of Rs 1,304 apiece.

LG Electronics India shares have however made some recovery from the record low level, rising more than 15% to close at Rs 1,501 apiece on Monday. The stock is still more than 12% lower than its listing price, although it is still 32% higher than its IPO price.

Should you buy LG Electronics shares?

Earlier last month, Elara Securities reiterated its ‘Accumulate’ rating on the shares of LG Electronics India, with a target price of Rs 1,750 apiece. This implies an upside potential of nearly 17% from the stock’s previous closing price. “LG Electronics India expects FY26 revenue to be flat or grow at a modest pace of 2-3%, in-line with its guidance. Thus, expect Q4 revenue to grow by high-single to double digits. LGEL expects low double-digit margin in FY26, implying Q4FY26 margin within 12.5-13.5% range, led by price hikes of 7-9% in room air conditioners (RACs) in January,” it said.

The brokerage said that it positive view on the stock was on account of the company’s market leadership in most durable categories, industry-leading margins, higher premium contribution versus peers and growth plans of raising exports, B2B and AMC contribution and filling white spaces in product portfolio.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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