Tata Capital, LG Electronics IPOs could light up October skies in D Street
If its festive season in the country, can equity markets be far behind? As Durga Puja ends and the country prepares for Diwali, the skies of Dalal Street are bracing up for fireworks with Tata Capital and LG Electronics uncorking mega IPOs in the already frenzied new issue markets.
Kolkata: The IPO frenzy on D Street is expected to increase in October when heavyweights such as Tata Capital and LG Electronics are supposed to light up the festive market with their own fireworks of two mega new issues. The two IPOs is targeting to mobilise nothing less than Rs 32,000 crore. While Tata Capital, the financial services venture of the Tatas, is going to raise Rs 17,000 crore, South Korean MNC LG Electronics can raise Rs 15,000 crore from the market, reports state.
The largest IPO so far this year has been the Rs 12,500-crore one by HDB Financial Services. If Tata Capital floats its 17,000-crore new issue, it will be the biggest IPO in 2025. According to reports, there have been as many as 59 mainboard IPOs in 2025, out of which 41 listed in gain while 9 listed in loss. Though the secondary market has been wobbly for the past few months, the new issue market has been market a lot of investor energy in a continuation of the trend in 2024.
Tata Capital IPO
The Tata Capital IPO is the first form the group in almost years. It will also be the biggest one in the country since the Rs 27,870-crore by Hyundai Motor India which hit the market in 2024. The last tata group company to tap the primary markets was in November 2023 when Tata Technologies offered a new issue to raise Rs 3,304 crore but ended up receiving applications worth almost 70 times that amount.
The Tata Capital IPO could consist of a fresh issue of about 21 crore shares and an offer for sale of 26.58 crore shares. Tata Sons currently holds 88.6% in the company. International Finance Corporation (IFC), another shareholder, can also offload up to 3.58 crore shares. Tata Capital was directed by the RBI to list by September in an effort to raise transparency levels in the big NBFC but Tata Capital was later granted some more time to prepare for the IPO. The money will be used to bolster tier-I capital and boost lending operations.
The lead managers to the IPO includes the following names: Kotak Mahindra Capital, Axial Capital, BNP Paribas, Citigroup Global Markets India, HDFC Bank, HSBC Securities & Capital Markets, ICICI Securities, IIFL Capital Services, JP Morgan India and SBI Capital Markets.
LG Electronics IPO
The LG Electronics IPO, too, is eagerly awaited in the investor circles. The new issue could try mopping up Rs 15,000 crore from the primary markets, though some reports have also said that the target could be slightly revised downwards. LG Electronics is going to sell 15% stake, or 10.2 crore shares, in the Indian unit. Therefore, it will be a completely OFS sale and the proceeds of the issue will go to the company's parent in South Korea.
Reports have already stated that Morgan Stanley India, JP Morgan India, Axis Capital, BofA Securities India, and Citigroup Global Markets India will function as the book-running lead managers to the issue.
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