Is the Rs 10,000 crore IPO jinx over? LG India shares listing breaks 15-year old Coal India record – News Air Insight

LG Electronics India made a blockbuster entry on Dalal Street, listing at a stellar 50% premium over its issue price of Rs 1,140. The debut not only rewarded investors handsomely but also created history among India’s Rs 10,000-crore-plus IPOs — a league where most large issues have struggled to maintain listing momentum. The previous record for highest listing premium was held by Coal India, whose IPO came way back in 2010.

So what helped LG defy the big-issue jinx? Analysts point to a combination of reasonable valuations, dominant market positioning, and strong earnings visibility. With a diversified product portfolio spanning home appliances, TVs, and ACs, LG commands a leading share in India’s consumer durables market and continues to outpace peers in both margins and growth.

Ambit Capital, which has a Buy rating and a 12-month target price of Rs 1,820, highlighted multiple tailwinds driving the company’s prospects – from localization and premiumization to export expansion and GST-led demand revival.

“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. It projects 11% revenue and 13% EBITDA CAGR over FY25–28.

Crucially, the IPO was seen as attractively priced. At 35x FY25 earnings, analysts said LG offered better value than many listed consumer peers trading at 45–60x. Its debt-free balance sheet, consistent ROE above 30%, and healthy EBITDA margins above 10% further bolstered investor confidence.

The company’s listing success also stands out when compared with India’s earlier mega issues. Coal India’s 2010 IPO remains the only notable gainer in this category, debuting with a 39.7% premium and nearly doubling investor wealth later. Most others – Reliance Power, Paytm, LIC, and GIC Re – fell short of expectations. Paytm’s Rs 18,300-crore IPO in 2021 plunged 27% on debut, while LIC’s record Rs 20,557-crore issue listed nearly 8% lower.LG’s strong debut marks a turning point, suggesting that scale doesn’t necessarily spell trouble when backed by fundamentals.The company’s long-standing brand recall, expanding domestic and export presence, and improving product mix have positioned it as a structural consumer story rather than a short-term trade.

In essence, LG Electronics India’s record-breaking listing demonstrates that big IPOs can shine when quality meets reasonable pricing.

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