In 2025, the Indian stock market is set to witness two of the biggest IPOs: Tata Capital IPO and LG Electronics India IPO. Both belong to powerful global brands, both are multi-thousand crore offerings, but the fundamentals behind them are very different. This post gives you a complete comparison of Tata Capital vs LG IPO, covering IPO size, dates, business model, valuation, strengths, risks, and investor insights.
Tata Capital IPO – Highlights
- Company: Tata Capital Ltd. – the financial services arm of Tata Group
- Sector: Non-Banking Financial Company (NBFC)
- Expected Size: Around ₹17,000+ crore
- IPO Structure: Combination of Fresh Issue + Offer for Sale
- IPO Timeline: Expected in October 2025
- Use of Funds: Lending growth, strengthening the balance sheet, and compliance with RBI norms
- Valuation: Estimated post-money valuation of ₹1.4–1.5 lakh crore
- Strengths: Tata brand trust, diversified lending (home loans, vehicle finance, SME lending, personal loans)
- Risks: High valuation concerns, sector-wide credit risks, NPAs (Non-Performing Assets), interest rate fluctuations
LG Electronics India IPO – Highlights
- Company: LG Electronics India, wholly owned subsidiary of LG Korea
- Sector: Consumer Electronics (TVs, ACs, refrigerators, washing machines, appliances)
- Expected Size: Around ₹15,000 crore
- IPO Structure: Mostly Offer for Sale (OFS) – parent selling stake
- IPO Timeline: Expected in late 2025 (delayed earlier due to market conditions)
- Use of Funds: Mainly parent monetisation; limited direct capital benefit for Indian business
- Dilution: Around 10% stake sale expected
- Strengths: Strong consumer brand, large distribution network, expanding manufacturing footprint (including new ₹5,000+ crore plant in Andhra Pradesh)
- Risks: Market volatility, margin pressure due to input costs, global competition in consumer electronics, and less capital for India growth
Tata Capital IPO vs LG Electronics India IPO Comparison
| Feature | Tata Capital IPO | LG Electronics India IPO |
|---|---|---|
| Sector | Financial Services (NBFC) | Consumer Electronics |
| Expected Size | ~₹17,000 crore | ~₹15,000 crore |
| IPO Type | Fresh Issue + Offer for Sale | Mainly exit for the parent, limited fresh infusion |
| Use of Funds | Business growth, lending expansion, capital strength | Competition, input costs, and limited capital use |
| Strengths | Tata brand trust, diversified lending, growth focus | Strong consumer demand, global brand visibility |
| Risks | Valuation, NPAs, NBFC sector regulations | Competition, input costs, limited capital use |
| Timing | Confirmed for October 2025 | Uncertain, may launch later in 2025 |
| Investor Appeal | Long-term growth play in financial services | Consumption/brand play, but less growth capital |
Investor Insights
- Tata Capital IPO: More growth-oriented, because it includes a fresh issue. The raised funds will help the company expand its loan book and strengthen its balance sheet. Being a Tata Group company adds brand trust, though valuation is on the higher side.
- LG Electronics India IPO: More of a stake sale by the parent company. It offers investors a chance to participate in the Indian consumption story, but since there is limited fresh capital infusion, the benefit for the Indian unit’s growth is restricted.
FAQs – Tata Capital vs LG IPO
Q1. Which IPO is bigger, Tata Capital or LG Electronics India?
Tata Capital IPO is slightly larger (~₹17,000 crore) compared to LG India (~₹15,000 crore).
Q2. Which IPO gives fresh growth capital?
Tata Capital IPO includes a fresh issue (funds go to the company). LG IPO is mainly OFS, so funds go to the parent.
Q3. Which IPO is launching first?
Tata Capital IPO is expected in October 2025. LG India’s IPO is still uncertain.
Q4. Which IPO is better for conservative investors?
Tata Capital may be seen as safer due to the Tata brand trust and fresh capital, but it also carries NBFC sector risks.
Q5. Which IPO benefits Indian operations more?
Tata Capital IPO (fresh funds for growth). LG IPO mainly benefits the parent company.
Final
- Tata Capital IPO → Bigger, growth-focused, includes fresh issue, better for long-term investors.
- LG Electronics India IPO → Strong brand, but more of a parent exit with less benefit for the India unit.
