A recent Bloomberg report states that LG Electronics India Ltd. made a striking debut in Mumbai trading on Tuesday, with its shares jumping 50% from the issue price to open at ₹1,715.
The surge lifted its market capitalisation to about $13 billion, surpassing that of its South Korean parent, LG Electronics Inc.
The strong listing has not only set a benchmark for Indian IPOs but also underscored investor confidence in India’s growing consumer market.
Coming shortly after Tata Capital’s modest 1.4% debut, LG’s performance signals a fresh wave of optimism in India’s primary market, which has drawn global investors in record numbers.
India’s IPO market gains global attention
According to Bloomberg, the success of LG India’s initial public offering marks another milestone in what is shaping up to be India’s most active IPO year.
With proceeds expected to exceed $5 billion in October alone, India continues to attract global capital, driven by a booming middle class and rising consumer demand.
During its public offering, LG India raised ₹116 billion ($1.3 billion) after bids exceeded available shares by 54 times.
The offering drew heavyweight institutional investors, including sovereign wealth funds from Abu Dhabi, Norway, and Singapore, along with major asset managers such as BlackRock Inc. and Fidelity International Ltd.
Their participation highlights growing confidence in India’s manufacturing and consumer sectors, areas that have become key pillars of the country’s economic growth story.
Global funds turn to India amid shifting capital flows
LG India’s blockbuster listing contrasts sharply with its earlier decision to suspend IPO plans and lower deal expectations earlier this year.
The revival reflects a shift in sentiment among global investors seeking exposure to fast-growing economies as Western markets face slowing growth and inflation concerns.
Bloomberg reports that Jefferies Financial Group recently noted that India’s primary market is “primed for a sharp rebound,” estimating that up to $18 billion could be raised in the second half of the year.
So far, IPO proceeds in 2025 have already crossed $15 billion, with LG and Tata’s listings pushing totals close to last year’s record of $21 billion.
This momentum demonstrates India’s emergence as a key destination for equity capital, particularly as global funds rebalance away from China and other slower-growth regions.
The strong domestic demand, combined with foreign inflows, has created favourable conditions for companies planning listings in sectors ranging from finance to technology and manufacturing.
Analysts’ cautious optimism on valuation
Despite the excitement, analysts have adopted a balanced view on LG India’s valuation. Motilal Oswal Financial Services set a target price of ₹1,800, projecting that the stock could continue to trade at higher valuation multiples given its strong fundamentals.
On the other hand, Sharekhan Ltd. considered the stock fairly valued at 35 times last fiscal year’s earnings, suggesting limited room for further gains in the near term.
Bloomberg notes that SBI Securities described LG India as having a “superior return profile” compared to its peers, citing its diversified product range and robust margins.
However, analysts have also warned that the broader market’s performance could influence short-term investor sentiment, especially with a crowded IPO calendar in the weeks ahead.
Upcoming listings signal continued market strength
October’s line-up of IPOs positions India to post its strongest month ever for equity fundraising. Upcoming issues include Lenskart Solutions Ltd., Groww’s parent Billionbrains Garage Ventures Ltd., and ICICI Prudential Asset Management Co.
Each of these listings is expected to test investor appetite further as companies rush to capitalise on bullish sentiment.
For investors, the remarkable debut of LG India provides not only confidence in the country’s IPO ecosystem but also a glimpse into India’s growing clout in global equity markets.
The listing’s success underscores how international and domestic capital are converging in India, fuelling what analysts see as a long-term structural story of growth, consumption, and industrial expansion.
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