Tata Capital IPO, LG Electronics India IPO Subscription: Even as nearly 200 companies keep their fundraising plans on hold, India’s capital markets are gearing up for two major initial public offerings (IPOs) worth over Rs 27,000 crore in the week beginning Monday (October 6). The first is Tata Capital Ltd, the flagship financial services arm of the Tata Group, which aims to raise more than Rs 15,000 crore. The second is LG Electronics India Ltd, the home appliances and consumer electronics giant, looking to mobilise over Rs 11,000 crore through its public issue. Analysts say both IPOs offer strong fundamentals and could appeal to investors with a long-term investment horizon. However, a large part of the proceeds — about Rs 18,500 crore — will go to the promoters, Tata Sons and South Korea’s LG, rather than into the companies themselves. This indicates that while the listings may boost market sentiment, they won’t immediately translate into new capital for business expansion. Tata Sons to rake in Rs 7,500 cr from Tata Capital IPO Tata Sons-backed non-banking financial company (NBFC), Tata Capital Ltd, is aiming to raise Rs 15,512 crore through its IPO. The offer consists of a combination of fresh issuance and an offer for sale (OFS), totalling around 47.58 crore equity shares of face value of Rs 10 each. The company will be issuing up to 21 crore new shares, amounting to Rs 6,846 crore, and the existing shareholders are looking to offload up to 26.58 crore shares, aggregating to Rs 8,666 crore. Tata Capital, classified by the Reserve Bank of India (RBI) as the ‘upper layer’ NBFC, has set the price band for its IPO at Rs 310-326 crore. At the upper band, the company aims to raise Rs 15,512 crore through the public offer, which would peg its post-issue implied market capitalisation at around Rs 1.38 lakh crore. In the issue, Tata Sons, the company’s promoter holding 88.6 per cent share in Tata Capital, is selling up to 23 crore shares in the IPO, while International Finance Corporation (IFC) is divesting up to 3.58 crore shares. This IPO is the fourth-largest IPO in the history of the domestic capital markets and stands as the biggest-ever in the NBFC space in the country. It is also the second public offering from the Tata Group in nearly two decades, following Tata Technologies' Rs 3,043 crore IPO in November 2023. The company is the third-largest NBFC in the country, primarily engaged in the lending business, which comprises retail finance, SME finance and corporate finance. The issue will open for subscription on October 6 and close on October 8. Ahead of the opening of the offer, Tata Capital raised Rs 4,641.8 crore from 135 anchor investors, including Life Insurance Corporation of India, Goldman Sachs and Morgan Stanley. The company's gross loan book stood at Rs 2,33,400 crore as of June 2025. Korean firm LG to get full proceeds LG Electronics India Ltd is aiming to raise Rs 11,607 crore through its first public offering. Through the IPO, the promoter of the company, LG Electronics Inc., is offloading 10.18 crore shares, constituting 15 per cent post-offer paid-up share capital. The company is valued at over Rs 77,000 crore at the upper price band of the IPO. The entire proceeds from the offer will go to LG Electronics Inc. of South Korea. The price band of LG Electronics India’s public offering has been set at Rs 1,080 to Rs 1,140 per share. The IPO will open for subscription on October 7 and close on October 9. Anchor investors will place their bid on October 6. LG Electronics India’s revenue from operations stood at Rs 24,367 crore in the fiscal year that ended March 2025. The company manufactures multiple product categories, including washing machines, refrigerators, panel televisions, inverter air conditioners, and microwaves. It has two manufacturing units located in Noida and Pune. Key considerations for investors Market analysts believe that both IPOs are reasonably priced and that investors with a long-term perspective may consider participating in these public offerings. “We believe the Tata Capital IPO is fully priced and recommend a ‘Subscribe–Long Term’ rating,” Anand Rathi Share and Stock Brokers said in a research note. However, some analysts have expressed concerns about the Tata Capital IPO due to the gap between the grey market price and the IPO price. In the grey market, shares of the company were reportedly trading at over Rs 500 apiece. “The company’s IPO price is nearly 50% lower than the current unlisted share price, which has created some negativity among investors,” said a market analyst. “Although the issue is decently priced, investors should not expect any major upside on listing as the issue size is quite large,” said another analyst. On LG Electronics India’s IPO, analysts have broadly advised investors to subscribe to the issue. However, they cautioned that since the issue is purely an offer for sale, the proceeds will go to the company’s promoter, LG Electronics Inc., and not to its Indian subsidiary. This could affect the company’s long-term growth prospects. It may be noted that in Hyundai Motor India’s (HMIL) Rs 27,870 crore ($3.3 billion) IPO — launched in October last year and the largest-ever share sale in the domestic capital markets — the entire proceeds went to its promoter, Hyundai Motor Company of South Korea. The retail portion of the IPO remained undersubscribed, with individual investors bidding for 2.49 crore shares against 4.95 crore on offer. The price band for HMIL’s IPO was set between Rs 1,865 and Rs 1,960 per share. However, the automaker’s shares made a weak debut, listing at Rs 1,931 apiece on the BSE — a 1.47 per cent discount to the upper end of the price band. The stock closed at Rs 2,508.35 on the BSE on Friday.
