LG India Lock-In Ends: ₹2200 Cr Shares Set to Trade, Brokerage Flags Risk

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AuthorKavya Nair|Published at:
LG India Lock-In Ends: ₹2200 Cr Shares Set to Trade, Brokerage Flags Risk
Overview

LG Electronics India shares are in focus as a three-month shareholder lock-in expires today, freeing up 15.2 million shares valued at approximately ₹2,211 crore. This influx could pressure the stock, which has seen a 17% correction from its post-listing high. Analyst sentiment remains cautious, with Avendus Spark initiating coverage at 'Reduce' and a target price of ₹1,536.

LG Electronics India Ltd. shares are under scrutiny today as a crucial three-month shareholder lock-in period concludes. Approximately 15.2 million shares, representing 2% of the company's total equity, will now be eligible for trading on the open market.

Lock-In Expiry

This volume of shares carries an estimated value of ₹2,211 crore based on Wednesday's closing price. While the expiry simply makes these shares available for sale, it does not guarantee immediate offloading by shareholders. Nevertheless, the potential for increased selling pressure looms over the stock.

Brokerage View

Adding to the cautious sentiment, Avendus Spark initiated coverage on LG Electronics India on December 24 with a 'Reduce' rating. The brokerage set a price target of ₹1,536 per share, citing intensifying competition and weakening customer bargaining power, although it acknowledged the company's extensive market reach as a persistent strength.

The stock has shown resilience, trading up approximately 28% from its initial issue price of ₹1,140. However, it has pulled back nearly 17% from its peak of ₹1,749 achieved shortly after listing. LG Electronics India shares closed down 2.7% on Wednesday at ₹1,454.60.

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