Tata Capital Ltd. and LG Electronics India Ltd. are set to start trading in Mumbai within the next few days, following the conclusion of two of India’s largest initial public offerings (IPOs) this year. The performance of these debuts will be closely watched, as they may assess the strength of one of the world’s hottest equity markets.
Tata Group’s shadow-lending unit, which successfully raised 155 billion rupees (approximately $1.7 billion), is expected to list on Monday. Meanwhile, the Indian arm of South Korea’s LG Electronics Inc. will follow suit a day later, having achieved remarkable oversubscription for a deal of its size—the most seen in 17 years.
These listings highlight India’s burgeoning status as a global fundraising hub, fueled by ample domestic liquidity and an expanding base of retail investors. Over the past two years, India has established itself as one of the most active IPO markets globally, attracting international investors eager to access its rapidly growing consumer economy. October is projected to be India’s largest month ever for IPOs, with total proceeds estimated to exceed $5 billion.
Successful launches are critical not only for the companies but also for setting the tone for the many firms poised to go public in India. Recent activity has sparked optimism that the cumulative proceeds from new Indian listings in 2025 could surpass last year’s record of nearly $21 billion.
“A strong debut of at least one of the significant IPOs could pave the way for a new wave of large listings in the coming months, as companies aim to leverage the robust investor sentiment and record liquidity,” stated Dharmesh Mehta, CEO of DAM Capital Ltd. “Conversely, any signs of weakness could dampen expectations and possibly delay other offerings.”
However, the size of the IPOs and brand recognition—Tata being one of India’s most prominent brands and LG leading in various home appliance categories—does not ensure success, as demonstrated by the largest three IPOs in India since 2020, all of which experienced declines on their first trading day. In contrast, this year’s other billion-dollar offerings have experienced gains, according to Bloomberg data.
As of Friday in Mumbai, LG Electronics India was trading approximately 30% above its IPO price in the gray market, while Tata Capital was slightly above its IPO price, per data from IPOCentral.in.
Analysts, such as those from SBI Securities and Centrum Capital, suggest that both Tata Capital and LG India remain undervalued compared to local competitors, based on metrics like earnings and book value. The prospect of purchasing shares at a lower price contributed to substantial demand, particularly for LG, which attracted bids that surpassed the number of offered shares by 54 times—the second-highest ratio for billion-dollar IPOs in India, trailing only Reliance Power Ltd.’s offering in 2008, as noted by exchange data. The sale garnered attention from prominent investors, including sovereign wealth funds from Abu Dhabi, Norway, and Singapore, as well as firms like BlackRock Inc. and Fidelity International Ltd. as anchor investors.
This strong demand contrasts with earlier in the year when LG paused its IPO plans and lowered its fundraising expectations.
Bids for Tata Capital were double the number of available shares, with significant interest from institutional investors. Notable anchor investors included Morgan Stanley, Goldman Sachs Group Inc., and Nomura Holdings Inc.
At the IPO price, Tata Capital is expected to position itself as India’s fourth-largest shadow lender by market value, following Bajaj Finance Ltd., Bajaj Finserv Ltd., and Jio Financial Services Ltd. This IPO proceeded despite recent concerns regarding non-bank finance companies, focusing on their capacity to manage rising bad loans and exposure to risky borrowers amidst an economic slowdown. It is also notable that Tata faced internal challenges, including a boardroom dispute within the philanthropic body controlling the conglomerate, which escalated to the point of requiring government intervention.
The listings of Tata and LG will elevate total IPO proceeds in India this year beyond $15 billion, as per Bloomberg data, with more offerings anticipated, including those from joint ventures of Canara Bank, ICICI Prudential Asset Management Co., Pine Labs Ltd., and Lenskart Solutions Ltd.
The current IPO momentum reflects India’s broader initiative to modernize capital markets and attract long-term foreign investment. Recent regulatory adjustments aimed to facilitate the public listings of substantial private firms, alongside moves by the central bank to ease lending regulations for investors participating in IPOs.
The forthcoming wave of new listings could position India’s IPO market, currently the world’s fourth largest this year, to surpass last year’s record figures, according to analysts at Jefferies Financial Group Inc.
The appeal of IPOs stands in stark contrast to the overall performance of the stock market, with the Nifty 50 index underperforming compared to regional peers throughout the year. Foreign investors are expected to withdraw a record sum from Indian stocks this year, and an index tracking newly listed shares has shown a modest decline of 0.2% for the year.
“The success of these two marquee offerings will send a strong signal to issuers and investors alike,” remarked Rajat Rajgarhia, executive director at Motilal Oswal Financial Services Ltd. “India’s markets have developed sufficient depth and liquidity to support significant deals like those from LG and Tata Capital, setting the stage for a robust pipeline of major IPOs in the upcoming months.”
Published on October 12, 2025.
