Oversubscription of high-value IPOs like Tata Capital, LG Electronics shows confidence in India’s growth story: Experts
(source : ANI) ( Photo Credit : ani)
Mumbai, India – October 11, 2025
India’s latest IPO wave shows investors still trust the country’s growth story, even as the Nifty and Sensex have not earned any returns in the last 13 months.
The past week brought two blockbuster listings – Tata Capital and LG Electronics India – that drew huge interest from local investors. Market analysts say the surge in Initial Public Offerings (IPOs) signals strong confidence in India’s economy and shows that domestic capital is not just watching but actively fueling the primary market.
Ajay Bagga, a banking and market expert, told that the strong IPO activity, especially the Tata Capital and LG Electronics issues, proves that domestic investors are “deeply and unwaveringly” backing the Indian growth story. “Local capital is driving the primary market, offsetting global volatility and foreign outflows in the secondary market,” he added.
2025 has become a record‑setting year for India’s primary market.
Excluding Tata Capital’s Rs 15,512 crore and LG Electronics’ Rs 11,607 crore, 74 Indian companies have raised more than Rs 85,241 crore through IPOs so far this calendar year. That puts 2025 close to becoming one of the biggest fundraising years in India’s primary‑market history.
The investor appetite spans many sectors, including non‑banking financial companies (NBFCs), consumer durables, tech and more. Aashish P. Sommaiyaa, CEO of WhiteOak Capital, explained that because the secondary market has been flatlining, many investors see IPOs as a better deal. “Tata Capital and LG are strong brands and benefit from a tailwind in the white‑goods sector, so their subscriptions were not surprising,” he said.
India now ranks as the fourth‑largest IPO market worldwide in funds raised, behind the U.S., Hong Kong and China. In some high‑activity periods, India has even ranked third globally. A strong pipeline of companies planning to go public keeps India’s position among the top primary markets.
The binge of investor interest is clear from the oversubscription numbers.
- LG Electronics India: 54.02× overall subscription
- Tata Capital: 1.95× overall subscription
Oversubscription happens when demand for shares in an IPO exceeds the supply. For example, a company offering 1 crore shares that attracts 54 crore bids is 54‑times oversubscribed. High oversubscription in retail and non‑institutional investor categories signals confidence in a company’s fundamentals and long‑term growth potential.
Overall, the recent IPO rush underscores the resilience and optimism of Indian investors. It reaffirms that India’s growth story remains appealing, even amid global uncertainty. ()
Source: aninews
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