India's capital markets are poised for a significant influx of capital as two major companies—LG Electronics India and Tata Capital—prepare to launch their initial public offerings (IPOs) next week. LG Electronics India aims to raise approximately ₹11,607 crore through an Offer for Sale (OFS) by its South Korean parent, LG Electronics Inc., with a price band set between ₹1,080 and ₹1,140 per share. Concurrently, Tata Capital plans to raise ₹15,512 crore in its IPO, comprising both a fresh issue and an OFS, with shares priced between ₹310 and ₹326. Both offerings are expected to open on October 6 and 7, respectively, marking a significant event in India's IPO landscape.
LG Electronics India IPO: A Strategic Move in the Consumer Electronics Sector
LG Electronics India is set to launch its IPO on October 7, 2025, aiming to raise ₹11,607 crore through an Offer for Sale (OFS) by its parent company, LG Electronics Inc. The price band for the offering is fixed between ₹1,080 and ₹1,140 per share. This move is part of LG Electronics Inc.'s strategy to streamline its global operations and focus on its core markets.
The IPO is expected to value LG Electronics India's business at approximately ₹8.7 billion, aligning it closely with its South Korean parent. The proceeds from the OFS will primarily go to LG Electronics Inc., with no fresh capital being raised for the Indian subsidiary. The listing is anticipated to enhance LG India's visibility in the Indian market and provide liquidity to its parent company.
Tata Capital IPO: Strengthening India's Non-Banking Financial Sector
Tata Capital, the financial services arm of the Tata Group, is scheduled to open its IPO on October 6, 2025. The offering aims to raise ₹15,512 crore, comprising a fresh issue of ₹6,846 crore and an Offer for Sale (OFS) of ₹8,666 crore by existing shareholders, including Tata Sons and the International Finance Corporation (IFC). The price band for the shares is set between ₹310 and ₹326.
The IPO's anchor investor round has already garnered significant interest, raising ₹4,642 crore from institutional investors, including Life Insurance Corporation (LIC), Goldman Sachs, and others. This strong institutional backing underscores confidence in Tata Capital's business model and growth prospects.
Tata Capital plans to utilize the proceeds to bolster its capital base, enabling it to expand its lending portfolio, particularly in the retail and SME sectors. As of June 30, 2025, the company reported a loan book of ₹2.3 lakh crore, with housing loans comprising one-third of the total. The company aims to increase its unsecured retail loan portfolio from the current 12% to as much as 15%, depending on the quality of the portfolio. The Times of India
Market Implications and Investor Considerations
The simultaneous launch of these two significant IPOs highlights the robust activity in India's capital markets. With a combined fundraising target exceeding ₹27,000 crore, these offerings are expected to attract substantial investor interest. The consumer electronics sector, represented by LG Electronics India, and the financial services sector, represented by Tata Capital, are both poised for growth, making these IPOs attractive to investors seeking exposure to India's expanding economy.
Investors should consider factors such as the companies' financial health, growth strategies, and market conditions before participating in these IPOs. Both offerings are expected to list on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in mid-October, with exact listing dates to be confirmed post-offer.
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