Explained: Tata Capital vs LG Electronics India IPO—A point-by-point comparison

The Indian primary market is buzzing this October as two heavyweight IPOs, Tata Capital Ltd and LG Electronics India Ltd (LGEIL), hit Dalal Street within a day of each other.

Together, these issues are worth over Rs 27,000 crore, making this one of the busiest weeks for IPO investors in 2025.

Both Tata Capital, a homegrown non-banking financial giant, and LG Electronics India, the local arm of South Korea’s electronics major, bring different strengths, valuations, and business models to the table. Here’s a detailed comparison.

Tata Capital IPO

Tata Capital’s Rs 15,512 crore IPO is the largest issue of the year so far. The offering includes a fresh issue of 21 crore shares and an offer for sale (OFS) of 26.58 crore shares, priced in the band of Rs 310-Rs 326 per share.

At the upper band, Tata Capital commands a valuation of Rs 1.38 lakh crore.

The fresh issue proceeds will be used to strengthen Tier-1 capital, enabling the NBFC to expand its lending operations.

Tata Sons, the holding company, will offload 23 crore shares in the OFS, while IFC (International Finance Corporation) will divest 3.58 crore shares.

On the financial front, Tata Capital has been delivering steady growth. Its FY25 profit after tax stood at Rs 3,655 crore, up from Rs 3,327 crore in FY24, while revenue surged to Rs 28,313 crore, a jump of over 55 per cent year-on-year.

With a diversified book spanning retail loans, infrastructure finance, and corporate lending, the company is well-positioned to capture India’s rising credit demand.

Listing is scheduled for October 13, 2025.

Tata Capital IPO – Expert View by Anil Singhvi

For Tata Capital’s IPO, Anil Singhvi, Managing Editor at Zee Business, advises investors to apply for the long term rather than chasing immediate listing gains.

He explains that while the IPO is large and allotment chances are high, it may not generate very sharp gains on listing, making it more suitable for investors looking at steady growth over time.

Singhvi highlights key positives, such as strong promoters, the top 3 NBFC market position in India, the highest AAA credit rating, a diversified and conservative business model, and a strong distribution network.

On the downside, he points out lower yields on loans compared to peers, some asset quality concerns due to the Tata Motors Finance merger, stiff competition, and about 20% unsecured loans.

Overall, he suggests that long-term investors can benefit from the stability and growth potential of Tata Capital, while keeping expectations realistic on immediate listing returns.

LG Electronics India IPO

Hot on Tata Capital’s heels, LG Electronics India Ltd (LGEIL) is coming out with an Rs 11,607-crore IPO, opening on October 7 and closing on October 9.

The entire issue is an offer for sale of 10.18 crore shares, representing a 15 per cent stake divestment by the South Korea-based parent company.

The price band is set at Rs 1,080-Rs 1,140 per share, valuing the company at about Rs 77,400 crore.

Unlike Tata Capital, LG India will not receive any proceeds, as the funds go to the parent.

However, the IPO gives Indian investors a chance to own a piece of a consumer electronics leader that has dominated the Indian market for nearly three decades.

As per SBI Securities, LG India has been the No.1 player in India’s consumer electronics and home appliances sector (excluding mobile phones) across 2022, 2023, 2024, and H1 2025.

Its market share in key product categories is unmatched: washing machines (33.5 per cent), refrigerators (29.9 per cent), panel televisions (27.5 per cent), inverter ACs (20.6 per cent), and microwaves (51.4 per cent).

In FY25, the company reported Rs 24,367 crore in revenue (up from Rs 21,352 crore in FY24) and net profit of Rs 2,203 crore (vs Rs 1,511 crore last year).

Its growth is supported by a pan-India distribution network of over 35,000 touchpoints, 1,006 service centres, and large-scale manufacturing units in Pune and Noida with a combined capacity of 1.45 crore products annually.

Listing is scheduled for October 14, 2025.

LG Electronics IPO – Expert View by Anil Singhvi

Anil Singhvi, Managing Editor at Zee Business, advises investors to apply for the LG Electronics IPO for both listing gains and long-term wealth creation. He notes that the IPO is big, so the chances of getting allotment are very high.

Singhvi suggests that retail investors should apply with a full Rs 2 lakh application, rather than just one lot, to maximise their chances. He emphasises that this IPO should not be confused with Hyundai’s, as it is 50% cheaper than listed peers, making it an attractive opportunity.

The expert highlights several positives, including strong global brand recognition, leadership in the Indian home appliances and consumer electronics market, a solid growth track record, and attractive valuations compared to peers like Havells and Voltas.

However, he also points out some negatives, such as the fact that the entire issue is an OFS, so no fresh funds go to the company, and promoters will further dilute their stake. Despite these points, Singhvi calls it a “must-apply IPO” for investors looking at both short-term listing gains and long-term value.