LG Electronics India Surges 50% on Debut, Overtakes Parent’s Market Value by 40%

LG Electronics India has made a spectacular stock market debut, achieving a milestone rarely seen in corporate history. The home-appliance maker’s shares rallied over 50% on their first trading day, propelling its market value to more than $13 billion.

This valuation significantly exceeds its South Korean parent, LG Electronics Inc., which is valued at about $9.4 billion. The Indian subsidiary now stands nearly 40% more valuable than its global parent on the very first day of listing.

Historic Market Debut Performance

Investor enthusiasm was evident as the stock surged to an intra-day high of ₹1,749 on the NSE, compared with its issue price of ₹1,140. This remarkable debut represents the best first-day gain for an IPO raising at least ₹10,000 crore since Coal India’s 40% surge in 2010.

The listing performance underscores overwhelming investor confidence in both the company’s prospects and India’s consumer growth story. The achievement becomes particularly notable given that peers like Maruti Suzuki and ITC took years to surpass their parent companies’ market capitalisation.

Valuation Premium and Market Position

Indian subsidiaries of global multinationals often command premium valuations, and LG Electronics India is no exception. The stock trades at roughly 43 times one-year forward earnings, compared to its parent’s 8.4 times, according to Bloomberg data.

This significant valuation premium reflects investor optimism about the Indian consumer market’s growth potential. The valuation gap also highlights the different growth trajectories perceived by investors for the Indian subsidiary versus its global parent.

Financial Performance Comparison

For the 12 months that ended in June 2025, LG Electronics Inc. reported a net profit of $476 million on revenue of $63.2 billion, with an EBITDA margin of 7.2%. In contrast, LG Electronics India posted a net profit of $248 million in FY25 on $2.75 billion in revenue, reflecting higher profitability and investor confidence in India’s consumer growth story.

The Indian subsidiary demonstrates stronger profitability metrics despite significantly lower revenue, justifying part of the valuation premium.

Market Implications and Significance

The successful listing reinforces India’s position as an attractive market for global corporations seeking premium valuations. The phenomenon of Indian subsidiaries outperforming their global parents highlights the unique growth narrative of the Indian consumer market.

This listing could potentially encourage other multinational companies to consider listing their Indian operations. The market response validates the strength of India’s IPO market and investor appetite for quality consumer brands.

Read More: LG Electronics IPO Allotment Status

Conclusion

LG Electronics India’s spectacular market debut represents a landmark event in India’s corporate history. The company’s achievement of surpassing its global parent’s market capitalisation on listing day underscores India’s growing economic significance.

The premium valuation reflects strong investor belief in India’s consumption growth story and the company’s execution capabilities. This successful listing sets a positive precedent for other multinational companies considering similar moves in the Indian market.

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