- TATA CAPITAL IPO
📅 IPO Timeline & Structure
The Tata Capital IPO is set to open for subscription from October 6 to October 8, 2025.
Full Timeline:
Bidding Starts : 6 October 2025
Bidding Ends: 8 October 2025
Allotment Finalisation: 9 October 2025
Release of funds: 10 October 2025
Demat Transfer: 10 October 2025
Listing: 13 October 2025
Traders in unlisted shares show that the stocks traded near ₹700–₹1,125 in certain windows before a sharp correction of ~30% from peaks. The IPO band of ₹310–₹326 is deep discount to unlisted valuations — this could act as a technical “support” for subscription interest. Expect volatility around listing day: price may gap, fill, and bounce. The key levels will be the IPO band, early post-listing high, and supports from those zones.
Key details
The issue size : ₹15,511 cr
Market capital : ₹1,38,382 cr
Revenue. : ₹28, 312.7 cr
Growth rate ( 3year CAGR) : 46.95%
Sector : Finance – NBFC
Price range. : ₹310 -₹326
IPO Type. : Regular
Lot Size. : 46 Shares
Min. investment. : ₹ 14,260.00
Out of the total, there is a fresh issue of ~210 million shares (approx ₹6,846 crore) and an Offer for Sale (OFS) of ~265.82 million shares (approx ₹8,665.87 crore) by existing shareholders.
Promoters (Tata Sons) will sell up to 230 million shares, and the International Finance Corporation (IFC) up to 35.82 million shares in OFS.
Listing is tentatively scheduled for October 13, 2025 on BSE and NSE.
📊 IPO GMP (Grey Market Premium) & Expected Listing Pop
The GMP for the IPO is rising. Based on recent reports, the estimated listing price is being pegged around ₹350, implying a potential gain of ~7-8% over the top band of ₹326.
The issue is priced below the unlisted share valuations. The last rights issue was priced at ~₹343, while unlisted shares had been trading at much higher levels (₹775+), suggesting the IPO band is conservative to attract subscription. Because the IPO is large, well-branded (Tata group), and concerns a financial sector name, there is an expectation that listing demand will be strong.
🔍 Key Risks Highlighted in RHP & Analyses
High debt-to-equity ratio relative to industry (6.5 vs ~3.49) raises leverage risk.
Valuation concern: The IPO P/E is steep vs industry norms — some reports show the implied P/E being ~108.78 in certain comparisons.
Dependence on credit cycles, asset quality risks, and macro headwinds can stress margins.
Dilution and overhang from OFS / promoter selling may weigh on early post-listing performance.
📈 Fundamentals of Tata Capital: What’s Strong, What’s Worrying
✅ Strengths & Business Model
Tata Capital is the financial arm of the Tata Group, giving it strong brand equity, trust, and access to capital.
It offers a diversified suite: retail loans, SME lending, commercial finance, consumer finance, asset management, wealth services, and distribution.
Its loan book has been growing rapidly. Some reports suggest strong growth metrics, reflecting the rising demand for credit across consumer & corporate segments.
⚠ Weaknesses / Risks
Leverage: As noted earlier, debt metrics are high, which can stress the balance sheet under economic stress.
Valuation premium: Pricing aggressively compared to peers or industry averages could backfire if execution or margin expansion falters.
Credit / asset quality risk: As an NBFC, exposure to defaults or macro slowdown is a major risk.
Market expectations: Because unlisted share valuations are high, expectations will be stretched; any underperformance may lead to valuation contraction.
📐 Technical / Pricing Insights (Pre-listing)
Because the stock is not yet listed, technical analysis is hypothetical and largely influenced by unlisted / grey market trends:
A prudent strategy: don’t enter exposure solely on hype — let volume, price stability, and post-listing pattern emerge before full participation.
2. 🏢 LG Electronics India IPO – Key Details
Full Timeline:
Bidding Starts : 7 October 2025
Bidding Ends: 9October 2025
Allotment Finalisation: 10 October 2025
Release of funds: 13 October 2025
Demat Transfer: 13 October 2025
Listing: 14 October 2025
Key Details
The issue size : ₹11,607 Cr
Market capital : ₹77,380 Cr
Revenue. : ₹24,366 Cr
Growth rate ( 3year CAGR) : 10.75%
Sector : Consumer durables- Electronics
Price range. : ₹1080 -₹1140
IPO Type. : Regular
Lot Size. : 13Shares
Min. investment. : ₹ 14,820.00
Employee discount: Eligible employees get a discount of ₹108 per share in the employee reservation portion.
📊 Financials & Fundamentals
Net profit (PAT) ~ ₹2,203.25 crore.
In Q1 (three months ending June 30, 2025): revenue ~ ₹6,337.36–₹6,796 crore, and profit ~ ₹513.26–₹680 crore depending on source.
Return ratios: Strong RoCE (Return on Capital Employed) and RoNW (Return on Net Worth). For example, RoCE ~ 45.3% and RoNW ~ 40-42% in FY24.
Cash & Liabilities: LG India reportedly has healthy cash on books; however, there is a royalty liability issue (to its Korean parent) disclosed in filings. Also, working capital cycles are lean.
⚖️ Valuation & Risks
P/E multiple: At the IPO price, the P/E ratio is ~ 33-35x based on diluted EPS for FY25.
Valuation estimate: The IPO values the company at ~ ₹77,300-₹78,000 crore (or USD ~$9 billion) post-IPO.
Earlier expectations for valuation were higher, but market conditions tempered them.
Key risks:
Royalty/related party expenses & contingent liabilities — LG India has disclosed royalty liability to its parent which could be nontrivial.
Competition from existing incumbents (Voltas, Havells, Whirlpool, Blue Star, etc.).
Margins may be pressured by import duties, supply chain costs, or regulatory changes.
High P/E means expectations are priced in; post-listing performance will matter.
Any disappointment (in demand, margin, supply chain disruptions) could impact listing pop / performance.
Pure OFS issue: proceeds go to parent, not used by the company.
That may reduce growth capital infusion, though brand, scale, and operations are strong.
🔧 Technical / Market Outlook & GMP
Grey Market Premium (GMP): Reports indicate a moderate positive GMP (~₹50-₹60) as of last published updates, showing decent listing interest.
Support zones for investors: IPO band (₹1,080-1,140) acts as reference/support post-listing.
Resistance zones post-listing will depend on peer multiples and margin visibility. If demand is strong, price could test higher.
🧭 Who Might Benefit & Strategy
For long-terms:
Investors seeking exposure to consumer electronics / home appliances in India may find LG’s brand, distribution reach, and operational scale attractive.
Given its strong fundamentals and expected growth, this could be part of a core portfolio, especially as the segment grows with rising incomes & demand.
For short / swing traders:
Watch opening/subscription response.
Strong subscription often gives a signal.
Be cautious on listing day: expected volatility.
Stop losses and exit plans are essential because high P/E = high risk of correction if expectations are not met.