Investors Confuse LG Balakrishnan with LG Electronics, Sending Stock Soaring on Dalal Street

In one of Dalal Street’s quirkiest episodes this year, LG Balakrishnan & Bros Ltd. saw its shares surge 15% after investors mistakenly bought it thinking it was LG Electronics India, which made a blockbuster IPO debut on Tuesday.

🏷️ Mistaken Identity Sends Stock Soaring

The mix-up occurred soon after LG Electronics India listed on the BSE and NSE following its ₹11,607-crore IPO. Reports suggest that several eager investors, keen to get a slice of the South Korean electronics giant, accidentally placed buy orders for LG Balakrishnan, the Coimbatore-based auto parts manufacturer.

The result? LG Balakrishnan shares jumped to a 52-week high of ₹1,640, a 15% rise from Monday’s close of ₹1,367.60.

🤔 Quick Realisation Brings Prices Back Down

It didn’t take long for investors to realize their error. Once the confusion cleared, LG Balakrishnan’s stock pared its gains and ended the day nearly 2% lower.

⚙️ Two Companies, No Connection

Despite sharing the “LG” tag, the two firms have no business link.

LG Balakrishnan & Bros Ltd. (est. 1937) specializes in automotive transmission products like chains, sprockets, and tensioners. Its market capitalization is around ₹4,300 crore.

LG Electronics India is the Indian subsidiary of South Korea’s LG Corp, known for TVs, refrigerators, and air conditioners. Its IPO debut valued the company at a staggering ₹1.14 lakh crore.

🌟 LG Electronics India’s Blockbuster Debut

The real LG made waves in the market, opening at ₹1,715 on the BSE, up 50% from the ₹1,140 issue price. It closed the day 48% higher at ₹1,689, following an IPO that was 54 times oversubscribed, driven by robust institutional demand.

While LG Electronics India celebrated a historic listing, LG Balakrishnan enjoyed a brief and accidental moment in the spotlight — all thanks to investor confusion and a shared two-letter ticker.