Around 1.52 crore shares, or nearly 2% of the company's outstanding equity, have reportedly become eligible for trading following the end of the lock-in. Market participants noted that the expiry does not necessarily signal immediate selling, as it merely permits these shares to be traded.
The stock's decline comes amid heightened investor caution typically seen around lock-in expiries, as additional free float can weigh on sentiment in the near term.
Meanwhile, LG Electronics India concluded an Advance Pricing Agreement (APA) with the Central Board of Direct Taxes on 5 January 2026, resolving transfer pricing matters for a nine-year period from 1 April 2014 to 31 March 2023.
Following the APA, contingent liabilities of Rs 172.44 crore related to direct taxes and Rs 315.30 crore linked to royalty payments to LG Electronics Inc. will become nil.
The settlement will result in a net tax expense of Rs 17.71 crore, excluding applicable interest. In addition, the company will pay Rs 3.86 crore to LG Electronics Inc. under secondary adjustment provisions in line with India's transfer pricing regulations.
LG Electronics India, a subsidiary of South Korea-based LG Electronics, is one of India's leading consumer durables companies. It manufactures and sells a wide range of products, including TVs, refrigerators, washing machines, and air conditioners, serving both retail and institutional customers.
The company's standalone net profit declined 27.3% to Rs 389.43 crore despite 1% increase in revenue from operations to Rs 6,174.03 crore in Q2 FY26 over Q2 FY25.
The stock was listed on the exchanges on 14 October 2025 at Rs 1,715, marking a premium of 50.44% over the issue price of Rs 1,140. The initial public offering of LG Electronics India was subscribed 54.02 times. The issue opened for subscription on 7 October 2025 and closed on 9 October 2025, with a price band of Rs 1,080 to Rs 1,140 per share.
At the current price, the stock is up 25.46% over its IPO price of Rs 1,140, but down 16.61% from its listing price of Rs 1,715.
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