A lesser known stock caught strays off LG India’s listing-day pop in a good way, so much so that its shares rose to a 52-week high.
On Tuesday, shares of LG Balakrishnan & Bros Ltd. rose to a 52-week high of ₹1,640 on the BSE, on a day when LG Electronics India Ltd. listed on India’s stock exchanges at a 48% premium over its IPO price. That’s roughly a 15% gain for the auto components maker from its previous close of ₹1,367.60.
According to an ET report that cited brokers, investors who rushed to buy LG India shares in early trade added buy calls for LG Balakrishnan instead. Upon realising the mistake, they quickly withdrew the buy calls for the auto-parts stocks. Eventually, LG Balakrishnan settled 2% lower on Tuesday.
The Confusion of the LGs?
We can see where the confusion comes from, even on the BSE website.
When one types ‘LG’ in the search bar of the BSE website, LG Balakrishnan & Bros. Ltd. (LGBBROSLTD) comes up with LG Electronics India Ltd (LGEINDIA) further lower in the dropdown.
To be clear, the companies are not related in any fashion.
Established in 1937, Coimbatore-based LG Balakrishnan & Bros Ltd. makes automotive transmission products, including timing and drive chains, gear sprockets, auto tensioners, guides, etc.
LG Electronics India is the domestic arm of South Korea’s LG Electronics Inc., which sells home appliances from ACs to TVs and refrigerators.
The market capitalisation of LG Electronics India is roughly ₹1.14 lakh crore, as compared to a ₹4,300 crore for LG Balakrishnan.