India’s dynamic market for new equity listings is poised for a significant month, with initial public offerings (IPOs) expected to generate over $5 billion in October. Two IPOs, each valued at over $1 billion, including the largest of the year, will begin accepting public orders in the upcoming week. The offerings from Tata Capital Ltd. and LG Electronics’ Indian branch will gauge investor demand in one of the busiest IPO markets globally in 2025, despite global economic challenges.
The surge in IPOs in India is driven by companies seeking capital to expand in the world’s fastest-growing major economy. This demand is bolstered by a robust pool of domestic capital and millions of retail investors encouraged by a nine-year rally in India’s benchmark stock index.
“There is now ample capacity to absorb supply,” noted Raghuram K, a partner at Uniqus Consultech, which assists companies preparing for IPOs. He pointed to the growing influence of domestic institutions like mutual funds and insurance companies in India’s market. These mutual funds have seen an influx of investments through monthly plans set up by retail investors, which bolsters their willingness to invest further.
In this context, the $1.7 billion IPO by Tata Capital offers an opportunity for investors to acquire shares in the financial services arm of the Tata Group, a major Indian conglomerate. This offering is expected to become the largest IPO since Hyundai Motor India Ltd.’s $3.3 billion listing last year. According to an exchange filing, leading funds such as Morgan Stanley, Goldman Sachs Group, White Oak Capital Partners, Marshall Wace, and local mutual funds will act as anchor investors for this share sale.
Similarly, LG Electronics India Ltd. presents an avenue for investors to tap into the growing consumption trend in the world’s most populous country. Despite a slowdown in India’s $5.1 trillion stock market in 2025, which has been affected by concerns over earnings growth and US-India relations, companies have successfully raised capital. The benchmark NSE Nifty 50 Index has only risen by 5% this year, a notable underperformance compared to broader Asian equity markets that have increased by approximately 23%.
As of the end of the third quarter of 2025, India has raised $11.2 billion from IPOs, ranking it as the world’s fourth-busiest IPO market this year based on fundraising volume, as per Bloomberg data. This follows a record tally of $21 billion in the previous year.
Analysts, including those from JPMorgan Chase & Co., JM Financial Ltd., and Kotak Mahindra Capital Co., anticipate the momentum to continue, fueled by recent regulatory changes. India’s securities market regulator has recently modified rules to facilitate larger private companies going public, while the central bank has relaxed lending regulations for investors participating in IPOs.
The performance of the Tata Capital and LG offerings will set a precedent for upcoming deals this month. Tata’s IPO will accept orders from October 6 to October 8, with trading set to commence on October 13. LG Electronics India’s offering will open for public subscriptions from October 7, closing on October 9, with shares expected to be listed on October 14.
Historically, large IPOs in India have frequently disappointed investors on their debut. Hyundai Motor’s shares dropped over 7% on their first trading day last October. Earlier, the listing of the state-run Life Insurance Corporation of India in May 2022, previously the largest IPO until Hyundai’s, saw a nearly 8% decline on its debut. The initial offering of One 97 Communications Ltd., operator of the digital payments platform Paytm, plummeted over 25% upon its introduction in late 2021, despite raising about $2.5 billion.
“Tata and LG are both prominent brands and should attract investor interest,” remarked Varsha Valecha, senior vice president of investments at portfolio management firm Chanakya Capital in Mumbai, “unless there is a negative global event in the next few days.”
This article was published on October 5, 2025.
