Tata Capital, LG Electronics IPO to light up D Street this week | Check all details

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Dalal Street is bracing for a blockbuster week as two of the most eagerly awaited IPOs of 2025—Tata Capital and LG Electronics—hit the market. Together, these offerings are expected to mobilize over Rs 27,000 crore, making it one of the biggest fundraising weeks in Indian primary market history. Investor enthusiasm is evident, with strong anchor demand for Tata Capital and a soaring grey market premium (GMP) for LG Electronics. Yet, analysts caution that high OFS (Offer for Sale) components and market volatility could play spoilsport for retail investors expecting bumper listing gains.

Tata Capital, the non-banking finance arm of the Tata Group, is making its market debut with the largest IPO of 2025. It has already raised Rs 4,642 crore from 68 marquee institutional investors including LIC, Goldman Sachs, Nomura, and Morgan Stanley. On the other hand, LG Electronics is launching a Rs 11,607 crore IPO, which is entirely an OFS, reflecting a partial exit by promoters but without fresh capital infusion. Despite this, the brand’s strong market presence in India’s consumer durables sector has kept investor interest intact.

Tata Capital IPO Highlights

However, what is raising eyebrows is Tata Capital’s falling GMP trend. According to data from Investorgain, the grey market premium has slipped from Rs 30 on September 26 to just Rs 9 on October 5, a day before the IPO opens. This decline indicates a muted listing gain of just about 2.7%, though the strong brand equity and growth potential in the NBFC sector continue to make it attractive for long-term investors.

LG Electronics IPO Highlights

Unlike Tata Capital, LG Electronics is showing strong momentum in the grey market. Its GMP jumped from Rs 145 on October 1 to Rs 228 on October 5, indicating an expected listing gain of nearly 20%. Analysts say that the popularity of LG’s consumer appliances, coupled with its solid earnings profile in India, is driving demand. However, as the IPO is a pure OFS, no fresh funds will be deployed into business expansion, which may limit long-term upside.

Analyst Viewpoints

• Tata Capital: Considered a safe bet for long-term investors due to its backing by the Tata Group and leadership in the NBFC sector. However, its valuations are on the higher side and listing day gains may remain modest.
• LG Electronics: Favored by investors looking for quick listing gains. The high GMP indicates strong demand, but analysts warn that being a pure OFS, the issue does not provide additional capital to fuel growth.

Key Risk Factors

• High OFS Component: Both IPOs heavily rely on OFS, raising questions over promoter exit strategy.
• Valuations: Tata Capital’s valuations appear stretched, and LG’s premium pricing may limit long-term upside.
• Market Volatility: Uncertainty in global markets and weak secondary market sentiment could impact listing day performance.
• Liquidity Pressure: Two mega IPOs back-to-back may strain investor liquidity, especially among retail participants.

Final Verdict:
Tata Capital looks attractive for investors with a long-term horizon seeking exposure to the growing NBFC sector, though short-term gains may disappoint. LG Electronics, on the other hand, could deliver healthy listing gains in the near term but may not offer much beyond initial excitement due to its pure OFS structure. Investors are advised to align their choices with risk appetite and investment goals.

Note: Grey Market Premium (GMP) is an unofficial indicator. It is highly volatile and should not be the sole basis for investment decisions.