LG Electronics' shares fall over 4% as three-month IPO anchor lock-in ends today, 1.5 cr additional shares now eligible for trade

LG Electronics India shares fell 4.3% on Thursday to hit the day's low of Rs 1,393.20 on the NSE as the three-month IPO anchor lock-in period ends today, setting free nearly 1.5 crore shares that account for 2% of the total outstanding shares, according to estimates by Nuvama Institutional Equities.

While the shares will be eligible for trading in the open market, the onus rests with the investors whether to sell them or not.

Listed on October 14, the Rs 11,607 crore initial public offering (IPO) of LG Electronics was entirely an offer for sale (OFS).


The stock ended at Rs 1,454.60 on the NSE on Wednesday and is currently 22% above the issue price of Rs 1,140, while 15% lower than the listing price of Rs 1,710.10.

LG’s strong parentage, wide distribution network, and brand trust give it an edge in both mass and premium markets," Rinkle Vira, Research Analyst at Anand Rathi, had said in the IPO note while recommending a 'Subscribe' view for the issue.

Prashanth Tapse, Senior Vice President of Research at Mehta Equities, had also suggested subscribing, arguing that the near-term growth visibility remains encouraging, aided by the anticipated GST 2.0 reforms.

LG Electronics India reported a 27% year-over-year (YoY) decline in its net profit to Rs 389 crore in the second quarter in comparison to Rs 536 crore in the year-ago period. Revenue from operations, meanwhile, rose by a marginal 1% YoY to Rs 6,174 crore in Q2FY26.

The company's Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) also fell 28% YoY to Rs 547 crore from a year earlier. Margins shrank 350 basis points to around 8.9%.

Segment-wise, revenue from the home appliances and air solution division fell marginally to Rs 3,948 crore, while that from the home entertainment division improved to Rs 2226 crore.

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LG Electronics received strong backing from analysts post the IPO. PL Capital, for instance, said LG India is well-positioned to build on its early market success.

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