LG Electronics India joins Maruti Suzuki in surpassing parent's valuation

LG Electronics India's valuation now tops its South Korean parent's, signalling India's growing clout as a global listing and investment destination

After a near 50 per cent surge in market value post-listing, LG Electronics India is now valued at almost $13 billion — 37 per cent higher than its South Korean parent, LG Electronics Inc’s, market capitalisation of $9.4 billion.

 

In its IPO, the Seoul-headquartered parent sold a 15 per cent stake, raising $1.3 billion (₹11,607 crore). The remaining 85 per cent holding is worth nearly $11 billion, about 17 per cent above LG’s own market cap.

 

LG now joins Maruti Suzuki India in eclipsing its parent’s valuation. India’s largest passenger car maker is worth $57.5 billion, more than twice Suzuki Motor Corp’s $28.3 billion market cap. Suzuki holds a 58.28 per cent stake in its Indian subsidiary. 

 

 

While most domestically listed multinational subsidiaries do not surpass their parents’ market capitalisation, they typically trade at steep valuation premiums. An analysis of 11 such firms shows trailing 12-month price-to-earnings (P/E) multiples between two and six times higher than their parent companies.

 

This trend has prompted firms like LG and Hyundai to weigh India listings. Experts believe LG’s robust debut on the domestic bourses could encourage more global majors to look at India listings. Last year, Hyundai and the latest LG IPOs marked the first time these South Korean giants have listed a unit outside their home market.