India’s stock market witnessed a rare case of mistaken identity on Tuesday as LG Balakrishnan & Bros Ltd. saw its shares jump nearly 15% during early trade — all because some investors confused it with LG Electronics India, which made a blockbuster debut on the exchanges the same day.
According to a report by The Economic Times, several traders and retail investors rushed to buy shares of LG Balakrishnan thinking they were investing in the newly listed LG Electronics India, whose stock skyrocketed over 48% above its issue price on debut.
As a result of the confusion, LG Balakrishnan’s share price surged to a 52-week high of ₹1,640 on the BSE, compared to Monday’s close of ₹1,367.60. However, once investors realized the error, the stock quickly reversed gains, closing nearly 2% lower by the end of the session.
Market participants said the identical “LG” prefix in both companies’ names likely triggered algorithmic and retail buy orders, especially amid the buzz around LG Electronics’ record-breaking listing.
To clarify, LG Balakrishnan & Bros Ltd. — established in 1937 and based in Coimbatore, Tamil Nadu — is a leading auto component manufacturer, specializing in automotive chains, sprockets, and transmission systems. It has no business or ownership connection with LG Electronics India, which is the domestic arm of South Korean tech giant LG Corporation, known for its televisions, air conditioners, and appliances.
The bizarre mix-up served as a reminder of how IPO euphoria and ticker confusion can create wild intraday swings — even for unrelated companies trading under similar names.
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