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Shares of LG Electronics India Ltd. will be in focus in Thursday's trading session as the company's three-month shareholder lock in ends on January 8.
Around 15.2 million shares, or about 2% of the company's outstanding equity, will become eligible for trading following the expiry of the lock in, according to Nuvama Alternative and Quantitative Research.
Based on Wednesday's closing price, these shares are valued at roughly ₹2,211 crore.
It is important to note that the end of the shareholder lock in does not imply that all these shares will be sold in the open market. The expiry only makes them eligible to be traded.
LG Electronics India has also recently received its lowest price target on the Street since listing. On December 24, Avendus Spark initiated coverage on the stock with a "Reduce" rating and a price target of ₹1,536 per share.
The brokerage in its note said that while competition has increased and customer bargaining power has weakened, LG Electronics' extensive reach continues to remain a key strength and competitive moat for the company.
The stock has risen about 28% from its issue price of ₹1,140 but has corrected around 17% from its post listing high of ₹1,749.
Shares of LG Electronics India ended 2.7% lower on Wednesday at ₹1,454.60.
Around 15.2 million shares, or about 2% of the company's outstanding equity, will become eligible for trading following the expiry of the lock in, according to Nuvama Alternative and Quantitative Research.
Based on Wednesday's closing price, these shares are valued at roughly ₹2,211 crore.
It is important to note that the end of the shareholder lock in does not imply that all these shares will be sold in the open market. The expiry only makes them eligible to be traded.
LG Electronics India has also recently received its lowest price target on the Street since listing. On December 24, Avendus Spark initiated coverage on the stock with a "Reduce" rating and a price target of ₹1,536 per share.
The brokerage in its note said that while competition has increased and customer bargaining power has weakened, LG Electronics' extensive reach continues to remain a key strength and competitive moat for the company.
The stock has risen about 28% from its issue price of ₹1,140 but has corrected around 17% from its post listing high of ₹1,749.
Shares of LG Electronics India ended 2.7% lower on Wednesday at ₹1,454.60.
