Tata Capital vs LG Electronics IPO GMP: Which Delivers Bigger Listing Pop in October?

India’s IPO market is heating up again this October, with two marquee names dominating investor attention, Tata Capital and LG Electronics. Both IPOs come from established giants in their sectors, drawing huge institutional and retail interest. But while both issues have seen strong subscription figures, their grey market premium (GMP) trends suggest very different listing outcomes.

The Tata Capital IPO closed on October 8, fully subscribed but signaling only modest listing gains based on a GMP of ₹7 per share. On the other hand, LG Electronics’ GMP has soared to ₹298, pointing to a potential 26 percent upside when it lists on October 14.

So, which IPO will deliver the bigger listing pop in October 2025? Let’s break it down.

Key Takeaways

• Tata Capital’s GMP is hovering around ₹7, indicating limited listing gains, while LG Electronics’ ₹298 GMP implies strong demand and a 26 percent listing premium. 
• Both issues have been oversubscribed, but the nature of the demand differs, Tata Capital is driven mainly by institutional investors, while LG’s rally is powered by non-institutional and retail bidders.

Tata Capital IPO: Strong Fundamentals, Muted Grey Market

The Tata Capital IPO marked the first offering from the House of Tata in nearly two years, following Tata Technologies’ successful listing. Despite strong fundamentals and an attractive valuation, its grey market momentum appears subdued.

According to the National Stock Exchange data, investors bid for 65.19 crore shares against 33.34 crore on offer, resulting in a 1.96x subscription. 

The breakdown shows that qualified institutional buyers subscribed 3.42 times their quota, non-institutional investors 1.98 times, retail investors 1.10 times, and employees 2.92 times.

However, its grey market premium has shrunk to just ₹7 per share above the issue price of ₹310–₹326, signaling a flat-to-mildly-positive debut on October 13. Analysts attribute this to a high valuation relative to peers and a general cooling in NBFC sentiment after an overheated pre-launch buzz that saw early GMP whispers as high as ₹735–₹1,125 before the final pricing.

Still, Tata Capital’s fundamentals remain strong. At the top of its price band, shares trade at around 3.4x book value, cheaper than peers like Bajaj Finance and HDB Financial Services. 

The ₹15,512 crore issue includes a fresh share sale and an offer-for-sale component. Proceeds will largely support Tier-I capital augmentation and future lending expansion, strengthening the company’s balance sheet for long-term growth.

Read Also: Concerns Around WeWork India IPO: What You Should Know

LG Electronics IPO: Big Hype, Bigger GMP

In contrast, LG Electronics has stolen the spotlight as one of 2025’s most awaited IPOs. Built around the company’s manufacturing strength and brand leadership, the ₹11,607 crore offer has been met with massive investor enthusiasm.

By the end of Day 2, the IPO had been subscribed 2.8 times, with Qualified Institutional Buyers taking up 169 percent of their portion, Non-Institutional Investors subscribing a remarkable 676 percent, and Retail Investors reaching 178 percent. The stock’s grey market premium currently stands at ₹298, implying a 26 percent expected listing gain.

Given the upper price band of ₹1,140, analysts expect LG Electronics to list in the ₹1,430–₹1,450 range if the momentum continues. The issue closes on October 9, with allotments expected on October 10 and listing on October 14 on both the NSE and BSE.

Unlike Tata Capital, LG’s offer is purely an Offer-for-Sale (OFS), meaning no new shares are being issued. The company aims to increase liquidity for existing shareholders, boost brand visibility, and establish a stronger public market presence in India.

Comparing Subscription Trends

Tata Capital and LG Electronics both saw overwhelming investor participation, but their demand profiles tell different stories. Tata Capital’s bidding was dominated by institutional players — a signal of confidence in its steady financial performance and long-term potential. LG Electronics, meanwhile, saw a retail-driven surge that pushed its GMP to sky-high levels within two days of bidding.

Retail oversubscription for LG reflects its strong consumer appeal and the public’s enthusiasm for the brand. For Tata Capital, steady institutional participation suggests faith in its fundamentals but limited speculative excitement, leading to muted short-term price action.

Price Bands, Allotment Dates, and Lot Sizes

Tata Capital’s price band was set between ₹310 and ₹326, with a minimum lot size of 46 shares, translating to a minimum application value of ₹14,996. The issue closed on October 8, and shares are expected to be listed on October 13, 2025.

LG Electronics, on the other hand, is priced between ₹1,080 and ₹1,140, with a lot size of 13 shares and a minimum application amount of ₹14,040. Its listing is slated for October 14, 2025 — just one day after Tata Capital hits the market.

Which IPO Offers More Listing Gains?

Based purely on GMP and subscription intensity, LG Electronics clearly leads the race. Its ₹298 grey market premium suggests strong listing day momentum, while Tata Capital’s ₹7 GMP points to a stable but less dramatic debut.

However, short-term listing gains don’t tell the full story. Tata Capital’s institutional-heavy base means its stock could hold steadier in post-listing sessions, benefiting from long-term holders. LG’s high retail and NII participation could lead to volatility if traders look to book profits immediately after listing.

Market watchers suggest that while LG may deliver the flashier debut, Tata Capital could prove to be a more reliable performer once the dust settles.

Market Outlook and Investor Takeaway

October 2025 has emerged as a crucial month for India’s IPO landscape, with both Tata Capital and LG Electronics setting benchmarks for investor appetite. Together, they represent over ₹27,000 crore in capital market activity — a sign that India’s equity markets remain deep and resilient.

Analysts caution investors to manage expectations. Grey market premiums can fluctuate sharply as listing dates approach, especially in volatile global conditions. 

While LG’s premium currently hints at a 25–30 percent pop, last-minute sentiment shifts could easily trim or expand that margin. Tata Capital’s muted GMP, on the other hand, may leave room for a slow but steady appreciation post-listing.

Final Thoughts

Tata Capital and LG Electronics showcase two very different investment appeals. Tata Capital offers institutional stability, conservative pricing, and long-term value tied to India’s financial sector. LG Electronics, meanwhile, is the consumer-tech giant attracting massive speculative interest and the promise of explosive listing gains.

For risk-averse investors, Tata Capital’s steady fundamentals may prove more rewarding in the long run. For traders and momentum seekers, LG Electronics presents a tempting short-term play with a high GMP and an oversubscribed book.

As both listings hit the markets within a day of each other, October’s IPO week could set the tone for India’s equity market sentiment heading into the final quarter of 2025.

Read Also: India's Primary Stock Market: A Thriving Hub for IPOs

FAQ

What is the GMP for Tata Capital and LG Electronics IPOs?

Tata Capital’s GMP is around ₹7, indicating a muted debut. LG Electronics’ GMP is ₹298, pointing to a 26 percent potential gain.

What are the listing dates for both IPOs?

Tata Capital will list on October 13, 2025, while LG Electronics will list on October 14, 2025.

How much were both IPOs subscribed?

Tata Capital saw 1.96x overall subscription, while LG Electronics exceeded 2.8x with strong retail demand.

Which IPO is better for short-term investors?

LG Electronics offers higher short-term listing gain potential due to its strong GMP.

Which IPO is better for long-term investors?

Tata Capital, backed by strong institutional interest and a robust financial foundation, may offer steadier long-term growth.