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LG Electronics India Enters Post-IPO Phase as Anchor Lock-In Ends

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Team Sahi

1 week ago3 min read

LG Electronics India share quietly entered an important post-IPO phase one that could shape near-term price action more than any earnings headline.

The company’s three-month IPO anchor lock-in has officially ended, making nearly 1.5 crore additional shares eligible for trading in the open market.That’s roughly 2% of LG India’s total outstanding equity, suddenly unlocking fresh liquidity that can reshape supply, volatility, and sentiment.

While this doesn’t mean shares will flood the market instantly, it does change the game.

Let’s decode what it really means.

What Exactly Changed Today?

During LG Electronics India’s IPO in October 2025, a large chunk of shares were allocated to anchor investors who committed capital before the public issue opened.

SEBI rules mandate lock-in periods for these investors to ensure post-listing stability:

Lock-In Phase Shares Released
30 Days (Nov 9, 2025) 50% of anchor shares
90 Days (Jan 8, 2026) Remaining 50%

With today’s unlock, the entire anchor allotment is now free to trade.

Net effect: ~1.5 crore additional shares are now eligible to hit the market.
They may not sell immediately but they can.
Fresh institutional supply entering the market can create short-term downward pressure as selling supply increases.

Where Does LG India Stock Stand Today?

LG India has already been through a full market cycle in just three months:

Price Point Level
IPO Issue Price ₹1,140
Listing High (Oct 13, 2025) ₹1,749
Current Market Price ~₹1,455

Still up ~28% from IPO
But down ~17% from listing highs

This tells an important story:
The stock has already corrected meaningfully but still trades at a premium to its IPO valuation.

Why Anchor Unlocks Matter So Much

Anchor lock-in expiries are not bad news.
They are simply liquidity events but liquidity changes behaviour.

Three outcomes usually play out:

  1. Short-Term Supply Pressure
    If even a fraction of anchors book profits, the added sell-side supply can cap rallies temporarily.
  2. Higher Volatility
    More floating shares = faster reactions to news, earnings, and market flows.
  3. Better Price Discovery
    With institutional shares now fully tradable, the market gets a cleaner valuation signal.

But What About LG’s Business Fundamentals?

That’s where things get interesting.

Q2FY26 Snapshot

Metric Result
Revenue ₹6,174 Cr (↑ 1% YoY)
Net Profit ₹389 Cr (↓ 27% YoY)
EBITDA ₹547 Cr (↓ 28% YoY)
EBITDA Margin 8.9% (↓ 350 bps)

Higher costs compressed margins, pulling profits down despite stable revenues.

Segment performance:

  • Home Appliances → Flat
  • Home Entertainment → Growing

Brokerages remain structurally positive on LG India’s long-term market positioning but near-term margin pressure is now a valuation variable.

What Should Retail Investors Watch Now?

Instead of guessing whether anchors will sell, track price behaviour:

Signal What It Means
High volumes + flat price Distribution / supply absorption
Sharp dips with recovery Strong institutional demand
Rising volumes + breakout Anchor selling getting absorbed cleanly

Also monitor (as of January 2026 levels):

  • Support near ₹1,400 zone
  • Reaction around ₹1,500–1,520 supply band
  • Margin trend in upcoming quarters

Final Take

The anchor lock-in expiry is not a warning, it's a phase transition.

LG India is now fully in the hands of the open market.
Price discovery begins. Volatility returns.
And true long-term valuation starts to form.

For traders this creates opportunity.For investors this creates clarity.

Either way, LG Electronics India has just entered its real post-IPO chapter.

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