In the next week, the public will begin placing orders for two initial public offerings (IPOs) worth over $1 billion, including the largest of the year.
With October IPO profits predicted to surpass a record $5 billion, India’s thriving market for new stock listings is about to reach a pivotal phase.
In the next week, the public will begin placing orders for two initial public offerings (IPOs) worth over $1 billion, including the largest of the year. Despite global tariff shocks and geopolitical uncertainties, share sales have accelerated in one of the busiest IPO venues of 2025, and the offerings from Tata Capital Ltd. and LG Electronics Inc.’s Indian unit are expected to test investor appetite.
Corporates looking for capital to expand operations in the major country with the highest rate of growth in the world have been driving the IPO frenzy in India. A robust domestic capital pool and millions of ordinary investors cheered on by the country’s benchmark stock index’s historic nine-year run have both contributed to the demand.
According to Raghuram K, a partner at Uniqus Consultech, a consulting company that helps businesses get ready for initial public offerings, “there is now adequate capacity to absorb supply.” He was making reference to the increasing market share of domestic organizations in India, including mutual funds and insurance companies.
Money is pouring into mutual funds via monthly investment plans that regular investors put up, allowing them to continue investing, he said.
The $1.7 billion Tata Capital transaction offers investors the opportunity to acquire stock in the financial services division of the Tata Group, one of the biggest and most reputable companies in India. Expected to be the largest initial public offering (IPO) since Hyundai Motor India Ltd.’s historic $3.3 billion transaction last year.
According to an exchange filing, the IPO drew anchor investors including local mutual funds, Marshall Wace, White Oak Capital Partners, Goldman Sachs Group Inc., and Morgan Stanley. Earlier, Bloomberg News revealed the information.
LG Electronics India Ltd. exposes investors to the rapidly growing consumption trend in the most populated country in the world.
Businesses have managed to obtain capital despite the fact that India’s $5.1 trillion stock market has slowed in 2025 because to tensions between the US and India and worries over a slowdown in profits growth. This year, the benchmark NSE Nifty 50 Index has only increased by 5%, which is a notable and uncommon underperformance in comparison to a more comprehensive measure of Asian stocks that has increased by almost 23%.
According to statistics published by Bloomberg, India was the fourth-busiest IPO market globally this year in terms of fundraising volume, with 2025 proceeds standing at $11.2 billion at the end of the third quarter. That brings the total to a record $21 billion from the previous year.
Some analysts, including JPMorgan Chase & Co., JM Financial Ltd., and Kotak Mahindra Capital Co., have forecast that the boom will continue, and regulatory revisions have further bolstered this confidence. While the central bank this week loosened regulations on loans to investors taking part in initial public offerings (IPOs), India’s securities market regulator last month modified regulations to facilitate the IPO process for extremely big private companies.
The way investors react to Tata Capital’s and LG’s offers may influence a number of other transactions this month. Tata will begin sales on October 13 after accepting orders from the general public from October 6 to October 8.
The public subscription period for LG Electronics India’s IPO will begin on October 7 and end on October 9. Shares will become public on October 14.
Since big Indian listings have a history of disappointing investors on their listing day, history is not on the two firms’ favor when it comes to debut performance.
On the first day of trade in October of last year, Hyundai Motor’s stock fell more than 7%. Before that, the shares of the state-run Life Insurance Corp. of India fell over 8% on the first day of its May 2022 IPO, which was the largest in the country until Hyundai’s. Prior to that, after raising over $2.5 billion on its launch in late 2021, One 97 Communications Ltd., the operator of digital payments company Paytm, saw a 25% decline.
Varsha Valecha, senior vice president of investments at Mumbai-based portfolio management company Chanakya Capital, said that “Tata and LG are both huge names and should draw investor attention” unless there is a bad worldwide event in the coming days.