Two heavyweight Indian IPOs are battling it out in the Indian stock market, and this battle is being witnessed. Both the Tata Capital IPO and LG Electronics IPO are open to subscriptions at the moment, making it a special case where the investors have to make sound decisions between a market leader in financial services and a market leader in consumer electronics.
Status Of Subscription
More Read
The uptake of the Tata Capital IPO and the LG Electronics IPO is slow and steady. The Tata Capital IPO has been experiencing steady demand since day 1, but not explosive. The high anchor support and the reputation of the brand play in their favor, yet the high issue size and the rivalry between the two simultaneous IPOs are aspects to monitor since both major IPOs are subscribing today. This competitive environment will play a critical role when it comes to the success of both issues.
Learning About The IPO Details
Tata Capital IPO Structure
Tata Capital IPO entails an issue of 21 crore fresh shares and an offer for sale of 26.58 crore shares, with a price offered in the range of ₹310 to ₹326.
According to Arun Kejriwal, founder of Kejriwal Research and Investment Services, this price is much lower than the unlisted price, which had been trading as high as ₹1100 plus at the start of the year. He cautions investors to be careful because this is the third such offering to take place on the main board, where issue prices are listed at significantly lower levels than the unlisted valuation.
LG Electronics IPO Structure
The IPO of LG Electronics will be an offer to sell 10.18 crore shares at a price of ₹1,080 to ₹1,140. It is also worth noting that LG Electronics will become the second South Korean firm, after Hyundai Motors, to be listed on Indian stock exchanges, after the latter was listed on October 22, 2024.
Tata Capital IPO
Prashanth Tapse, Sr VP (Research) at Mehta Equities Ltd, said that for long-term conservative investors, there is an opportunity to invest in the financial services sector in India with the Tata Capital IPO, which offers a combination of scale, diversification, and high brand credibility under the Tata Group.
Tapse remarked that the company has achieved good and stable growth in revenue generation through operations and profitability. Regarding valuation, the issue is seeking a market cap of ₹1,38,383 crore as per the upper band price of ₹326.
The proposed P/B is 3.2x based on FY2026 annualised earnings, fully diluted post-IPO paid-up capital, which, as he puts it, is reasonably priced at around 4x average of its similar listed companies, with healthy potential for long-term value creation.
LG Electronics IPO
Prashanth Tapse also observed that the LG Electronics India IPO provides a good investment opportunity for investors who want to enjoy immediate listing benefits as well as a long-term growth perspective into the top home appliances and consumer electronics company in India.
LG Electronics India is the market leader in several segments, such as washing machines, refrigerators, and televisions, and therefore has strong brand equity and penetration. According to Tapse, the IPO will give Indian investors an uncommon chance to join the long-term expansion journey of a global consumer electronics conglomerate.
The valuation at the high end of the price band is rational in relation to domestic listed peers, many of which are trading at much higher multiples, he said. The firm is projected to experience healthy growth in the home appliances and electronics industry due to strong tailwinds from the current festive season, GST-related benefits, and increasing consumer incomes, which would support the company’s performance in the upcoming quarters, the expert added.
Premium Analysis Of The Grey Markets
Knowledge of the grey market premium is important for investors estimating potential listing gains. The so-called grey market premium demonstrates the willingness of investors to pay a premium over the issue price.
Tata Capital IPO GMP Today
The current IPO/GMP of Tata Capital, also referred to as the grey market premium, stands at ₹12.5. This represents an overvaluation of Tata Capital stock at ₹12.5 in the grey market.
Considering the higher end of the IPO price range and the existing premium in the grey market, the estimated listing price of Tata Capital can be said to be ₹338.5 per share, or 3.83% above the IPO price of ₹326.
As per grey market data from the previous 12 sessions, the grey market premium (GMP) of the IPO is declining and is likely to continue. According to experts, the minimum GMP was ₹7.50 and the maximum was ₹30.
LG IPO GMP Today
The current LG Electronics IPO GMP is ₹318. This shows that the LG Electronics share price is being sold at a high premium of ₹318 in the grey market.
Taking the highest point of the IPO price band and the existing premium in the grey market, the listed price of LG Electronics is estimated to be ₹1,458 per share, or 27.89% higher than the IPO price of ₹1,140.
According to grey market trends observed in the past seven sessions, the current IPO Grey Market Premium (GMP) is moving in an upward direction, indicating a good listing should be expected. Experts note that the minimum GMP was ₹145.00, whereas the maximum was ₹318.
Tata Capital IPO Vs LG Electronics IPO
| Aspect | Tata Capital IPO | LG Electronics IPO |
|---|---|---|
| Price Band | ₹310 – ₹326 | ₹1,080 – ₹1,140 |
| Issue Composition | Fresh Issue: 21 crore shares OFS: 26.58 crore shares | OFS: 10.18 crore shares |
| Market Cap (at upper band) | ₹1,38,383 crore | Not specified |
| Current GMP | ₹12.5 | ₹318 |
| Expected Listing Price | ₹338.5 | ₹1,458 |
| Expected Listing Gain | 3.83% | 27.89% |
| GMP Trend (Recent Sessions) | Downward (12 sessions) | Upward (7 sessions) |
| Lowest GMP Recorded | ₹7.50 | ₹145.00 |
| Highest GMP Recorded | ₹30 | ₹318 |
| P/B Ratio | 3.2x | Not specified |
| Sector | Financial Services | Consumer Electronics |
| Investment Type | Conservative, Long-term | Short-term Gains + Long-term Growth |
| Key Strengths | Tata brand, diversification, reasonable valuation | Market leader, brand equity, festive demand |
| Comparable Peer Average P/B | ~4x | Higher multiples |
| Notable Distinction | Third consecutive main board IPO priced below unlisted valuation | Second South Korean company on Indian exchanges |
Conclusion
Which IPO to invest in between the two will depend on your investment objectives and risk tolerance. Tata Capital provides stability and long-term value under the Tata brand umbrella with a reasonable valuation in the financial services business. Nevertheless, the trend in its GMP is negative, implying dampened short-term profits.
Conversely, LG Electronics introduces the dynamism of a global consumer electronics company with strong market leadership. The upward GMP trend and greater anticipated listing gains make it favorable for both short-term traders and long-term investors.
The strengths of both IPOs differ. The festive season demand may help improve LG’s performance, while Tata Capital’s diversified financial services offer long-term stability. The final choice depends on your investment goals and market risk appetite.
Follow Us: Facebook | X | Instagram | YouTube | Pinterest
