LG Electronics Share Price Dips 4% Post Lock-In Expiry; Stock Down 18% Since Listing

Market Performance: LG Electronics Shares Slip

LG Electronics India saw its shares decline by over 4% on January 8, following the end of the three-month shareholder lock-in period. The stock closed at Rs 1,393.20 per share, marking its lowest level since the company’s market debut.

• Current price: Rs 1,393.20
• Drop since listing: 18%
• Lock-in shares now eligible for trading: 1.52 crore shares (~2% of total equity)
• Approximate value of unlocked shares: Rs 2,214 crore (based on previous close of Rs 1,456.40)

The expiry of the lock-in period does not mean immediate selling. It simply allows shareholders to trade their holdings, creating potential near-term volatility in the stock price.

LG Electronics Lock-In Expiry Details

The three-month lock-in period for certain LG Electronics shares ended on January 8. This milestone allowed 1.52 crore shares to become available for trading.

• Represents roughly 2% of total company equity
• Valued around Rs 2,214 crore based on previous closing price

While this increases liquidity in the market, it doesn’t guarantee that all unlocked shares will be sold at once. Investors now have the option to trade, which could influence short-term price movement.

Company Overview & Market Debut

LG Electronics India had a remarkable market debut on December 10, listing at Rs 1,710.10 per share on the NSE. This was a 50% premium over its IPO price of Rs 1,140 per share.

• IPO size: Rs 11,607 crore
• Subscription: Over 54 times

Since its listing, the stock has corrected, trading 18% lower than the debut price. Despite this, the company remains a significant player in the Indian consumer electronics market.

• Washing machines market share: 33.4%
• Refrigerators market share: 29.9%

The stock’s strong listing highlighted investor interest in LG Electronics’ brand and market position.

Summary of the Article

LG Electronics India’s shares faced a notable dip of 4% as the three-month lock-in period expired, enabling 1.52 crore shares (~2% of total equity) to become tradable. Despite trading lower than the listing price, the company maintains a strong position in key product segments like washing machines and refrigerators.

• Current share price: Rs 1,393.20
• Drop since listing: 18%
• Lock-in shares released: 1.52 crore (~Rs 2,214 crore)
• Market debut: Rs 1,710.10 per share
• IPO subscription: 54x
• Key market shares: Washing machines 33.4%, Refrigerators 29.9%

The stock’s movement after the lock-in expiry is natural as liquidity increases, but LG Electronics continues to hold a strong market presence with significant brand recognition and operational scale.

Source: Moneycontrol