India’s Largest IPO of 2025 Garners $1.7 Billion
Tata Capital Ltd., a key financial arm of India’s prestigious Tata Group, is set to commence trading on the Mumbai stock exchange after concluding the largest initial public offering (IPO) in India this year. The offering raised a staggering ₹15,500 crore ($1.7 billion), marking the biggest capital raise since Hyundai Motor India Ltd.’s record ₹27,000 crore ($3.3 billion) listing in 2024.
The IPO attracted high-profile anchor investors including Morgan Stanley and Goldman Sachs Group Inc., signaling strong institutional confidence. According to grey market trends, the listing price is expected to remain close to the IPO issue price of ₹326 per share.
Setting the Stage for a Blockbuster Week in Indian Markets
LG Electronics India IPO to Follow
Tata Capital’s listing kicks off what’s shaping up to be a crucial week for Indian equity markets, with LG Electronics Inc.’s Indian arm scheduled to list next. The performance of these offerings is being watched closely, especially as dozens of Indian companies are gearing up to tap into the buoyant IPO environment and raise billions in fresh capital.
Long-Term Potential Despite Competitive Challenges
Analysts View Stock as a Hold for Long-Term Investors
According to a report by Indian brokerage Choice, Tata Capital is well-positioned for sustained growth, owing to its strong brand equity and its expanding network of nearly 1,500 branches across India. However, the report highlights that Tata Capital’s return on assets (RoA) remains lower than industry peers, prompting a cautious “hold for the long term” recommendation rather than a short-term bet.
India’s IPO Scene: A Global Investment Magnet
Domestic Liquidity and Retail Surge Driving the Boom
Tata’s debut comes at a time when India is emerging as a global powerhouse for capital raising, buoyed by strong domestic liquidity and an ever-expanding base of retail investors. October 2025 is on track to become India’s most active month ever for IPOs, with total proceeds expected to exceed $5 billion.
Despite recent challenges in the non-banking finance sector, Tata Capital’s fully subscribed IPO — even in a tight liquidity environment — reflects a renewed investor appetite, especially after the Indian government introduced industry-supportive measures to aid non-banking lenders.
India Climbs to Fourth Spot in Global IPO Rankings
Over $11 Billion Raised in Just Nine Months
With IPO proceeds surpassing $11 billion in the first three quarters of 2025, India now ranks as the fourth-largest IPO market globally, per data compiled by Bloomberg. This comes on the heels of a record-setting 2024, when Indian markets witnessed nearly $21 billion in public equity offerings.
Big Names Back the Mega Deal
Global and Indian Banks Steer Tata Capital’s Offering
A consortium of major financial institutions managed Tata Capital’s public offering. These include:
- Kotak Mahindra Capital Co.
- Axis Bank Ltd.
- HDFC Bank Ltd.
- ICICI Securities Ltd.
- IIFL Capital Services Ltd.
- SBI Capital Markets Ltd.
- Local arms of BNP Paribas SA, Citigroup Inc., HSBC Holdings Plc, and JPMorgan Chase & Co.
Their involvement underscores the confidence and credibility backing Tata Capital’s market debut.
