LG Electronics India made a stellar debut on Dalal Street, listing at a 50% premium and surpassing its South Korean parent’s $10 billion market capitalisation on day one. The IPO had garnered bids worth over ₹4 lakh crore, the highest ever for any Indian IPO. “If there were a bubble, these IPOs would not have got the response. These IPOs are happening on the back of genuine demand,” Mehra said, citing strong inflows into mutual funds as a key driver.
He added that while pricing plays a crucial role in IPO performance, investors should pay close attention to the quality of the management team. “More often than not, it is the management which makes or breaks the company. I would focus 75% of my energy on the management. Does the management have the fire in the belly? If they do, trust me, you should invest in those companies,” Mehra explained.
Mehra also highlighted that India is emerging as a robust IPO market, with $14 billion already raised this fiscal year and a pipeline that could see $40 billion of fundraising by year-end. He noted that both domestic and global investors are participating actively, especially in high-quality, reasonably priced offerings.The Axis Capital chief pointed to a range of upcoming listings, including companies such as Physics Wallah, Groww, Pine Labs, Meesho, and Lenskart, while cautioning that investors should look at the promoters’ track record, the management team, and the company’s free float before making investment decisions.
LG Electronics India’s IPO success is seen as a benchmark for the market, reflecting strong fundamentals and investor confidence. The company has said that going forward, its focus will remain on premiumisation and improving margins, signalling a clear growth path for shareholders.
With high-quality companies lining up for listings in the coming months and robust participation from both domestic and foreign investors, Mehra said India’s primary market is likely to maintain momentum. “There is no shortage of money, trust me. The response from the market has been very positive, and we expect this trend to continue,” he added.
Watch accompanying video for entire conversation.
