LG Electronics India shares fall 5% from day's high on market debut day; check target price by brokerages

LG Electronics India share price declined 5 percent from its day's high after making a stunning stock market debut, listing with a premium of over 50 percent, against the issue price of Rs 1,140 per share.

Shares of the company made an intraday high of Rs 1,749 per share on the NSE. At around 12:45 p.m., it was trading at Rs 1,693, down 3.2 percent.

LG Electronics India surged 50.4% in its trading debut on October 14 and valued the company at $13.07 billion (Rs 1.15 lakh crore), eclipsing its South Korean parent's market capitalisation of nearly $10 billion (Rs 8,800 crore), as investors piled into the country's most bid-for IPO since 2008.

The stock started trading at Rs 1,715, surging 50.43 percent from the issue price on the BSE. At the NSE, the stock made its market debut at Rs 1,710.10, registering a premium of 50 percent.

LG Electronics India IPO received 54.02 times subscription, driven by overwhelming participation from institutional buyers. The Rs 11,607-crore IPO had a price band of Rs 1,080 to Rs 1,140 per share.

LG Electronics India shares make bumper stock market debut

What Brokerages say?

Motilal Oswal initiated coverage on the stock with a target price of Rs 1,800 per share. The company is likely to benefit from India's 14 percent CAGR home appliances growth. The reserarch report noted strong distribution and brands strenghts among its key highlights, however, flagged royalty hikes and rising competition among its key risks.

Prabhudas Liladher Capital, recommend a target price of Rs 1,780 per share, an upside potential of 56 percent.Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.