In a case of mistaken identity, shares of LG Balakrishnan & Bros , a Coimbatore-based auto component manufacturer, experienced unusual trading activity as investors erroneously purchased its stock while attempting to buy shares of the newly-listed LG Electronics India.

Stock Price Fluctuation

The confusion led to a significant surge in LG Balakrishnan & Bros' stock price, reaching ₹1,600.00 – nearly 15% above its previous closing price of ₹1,390.00. However, the gains were short-lived as the stock eventually closed 1.6% lower at ₹1,367.60.

Trading Volume Spike

The mistaken identity resulted in an extraordinary increase in trading volume:

This surge represents a staggering increase of over 2,000% compared to the typical daily trading volume.

Market Capitalization

LG Balakrishnan & Bros, with a market value of ₹4,372.00 crore, found itself at the center of this confusion as investors rushed to participate in what they believed was the LG Electronics India IPO.

Similar Incidents

This is not an isolated incident in the stock market. Brokers have reported comparable cases of mistaken identity:

1. Confusion between Tata Motors and its DVR shares
2. Global mix-up where Zoom Technologies was mistaken for Zoom Video Communications

These incidents highlight the importance of investor awareness and the need for careful verification when placing stock orders, especially during high-profile IPOs or listings.

Investor Takeaway

This event serves as a reminder for investors to exercise caution and double-check stock symbols and company details before executing trades. It also underscores the potential for short-term price volatility that can occur due to such misunderstandings in the market.

LG Balakrishnan & Bros Limited, a prominent Indian manufacturing company, has reported a cybersecurity incident affecting its IT systems. The company detected a malware attack and has taken immediate steps to address the situation.

Cybersecurity Incident Details

According to a disclosure made by the company under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, LG Balakrishnan & Bros has experienced a malware incident affecting select IT systems. The company has acted promptly to contain the impact and secure its systems.

M Lakshmi Kanth Joshi, Senior General Manager (Legal) & Company Secretary & Compliance Officer, stated in the disclosure, "The Company has detected a malware incident, affecting select IT Systems and immediate action has been taken to contain the impact and secure the system."

Response and Monitoring

LG Balakrishnan & Bros has taken several steps in response to the cybersecurity threat:

1. Immediate containment measures to limit the impact of the malware
2. Notification of relevant authorities about the incident
3. Ongoing monitoring of the situation to ensure business continuity

The company emphasized that it continues to operate its business as usual while closely monitoring the situation.

Financial Performance

Despite the cybersecurity challenge, LG Balakrishnan & Bros reported positive financial results for the recent quarter. The company posted revenue of ₹486.00 crore, up from ₹436.00 crore in the year-ago period. However, EBITDA saw a slight decline from ₹74.00 crore to ₹71.00 crore.

Future Outlook

CMD B Vijayakumar provided insights into the company's future prospects:

• US market expansion for industrial chains may slow but is not expected to significantly impact overall performance
• The company is targeting 10-15% growth for FY26
• Exploration of operations in Vietnam or Cambodia is underway

Stock Performance

Following the news, shares of LG Balakrishnan & Bros closed at ₹1375.55, up ₹2.70 from the opening price.

As LG Balakrishnan & Bros navigates this cybersecurity challenge while maintaining growth, stakeholders and investors will be watching closely for any updates on the incident's impact and the company's ongoing response measures.