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Russian (RU) India’s capital markets are set for a blockbuster October, with Tata Capital and LG Electronics lining up initial public offerings worth a combined Rs 32,000 crore, testing whether investors still have an appetite for mega issues after a record year of fundraising as the country heads into the Diwali season.
Tata Capital, the financial services arm of the Tata Group, is preparing to launch its IPO in the first half of October, people familiar with the matter told The Economic Times, in what could raise as much as Rs 17,000 crore. Around the same time, South Korea’s LG Electronics is expected to float the Rs 15,000-crore IPO of its Indian arm, making it the largest issue of 2025 so far.
Tata Capital IPO
The Tata Capital offering will consist of a fresh issue of about 210 million shares and an offer for sale (OFS) of 265.8 million shares, taking the total size to 475.8 million shares. Tata Sons is expected to sell up to 23 million shares, while International Finance Corporation (IFC) could offload up to 35.8 million shares. Tata Sons currently holds 88.6% in the company, with IFC owning 1.8%.
The Reserve Bank of India had directed large non-banking finance companies such as Tata Capital to list by September to increase transparency and reduce systemic risks. Sources said the regulator granted the company additional time to prepare. Funds from the fresh issue will be used to strengthen tier-I capital and support lending growth.
This would mark the Tata Group’s first IPO in two years and the country’s biggest since Hyundai Motor India’s Rs 27,870-crore issue in 2024. An email sent to Tata Capital seeking comment remained unanswered until press time.
Unlisted shares of Tata Capital were trading at Rs 785 apiece on Friday, about 28% below the Rs 1,095 peak hit in October 2024.
LG Electronics IPO
LG Electronics’ Rs 15,000-crore issue is expected to open in early October after receiving Securities and Exchange Board of India approval earlier this year. The South Korean company will sell about 10.2 crore shares, or a 15% stake, in its Indian unit.
“The company was waiting for market conditions to stabilise before launching the issue, and it now sees October as the right window,” one banker familiar with the plan told ET.
Morgan Stanley India, JP Morgan India, Axis Capital, BofA Securities India, and Citigroup Global Markets India are the book-running lead managers. Emails sent to the company and the bankers remained unanswered.
This will be the second-largest offering by a Korean company in India, after Hyundai’s blockbuster debut last October.
IPO pipeline
LG and Tata Capital’s issues add to what has already been a robust year. Nearly 30 IPOs have raised more than Rs 60,000 crore in 2025 so far, led by HDB Financial Services’ Rs 12,500-crore offering. Another Rs 70,000 crore worth of issues, including Groww, Meesho, PhonePe, Boat, WeWork India, Lenskart, Shadowfax and Physics Wallah, are expected to follow.
With a festive-season line-up of high-profile offerings, October will be a test of how far investors’ risk appetite can stretch in India’s overheated primary market.
Also read | IPO calendar: Vijay Kedia-backed issue among 5 new offers for investors to track next week
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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