Tata Capital & LG IPOs Spark Liquidity Tensions in Market

💰 Tata Capital Limited IPO
🗓️Date : 6 - 8 Oct ,2025
🏷️Price Band : ₹310 - ₹326
📦Market Lot : 46 Shares
💰Appl Amt : ₹14,996
📏Size : ₹15,511.9 Crores Approx
👦Retail Portion : 35%
📃 Retail Form : 36,11,272
📄HNI Small Form : 36,850
📄HNI Big Form : 73,699
🏷️Face Value :… pic.twitter.com/QS9jbW46Gy

— IPO Ji ® (@ipoji_) October 5, 2025

Analysts Warn of Liquidity Pressure Amid Twin IPOs

Another, albeit related, development is the upcoming IPO from LG Electronics, along with several other large issues planned for that week. Collectively, these issues could consume quite a bit of institutional and retail capital that would otherwise go to secondary market stocks — especially midcaps and smallcaps that depend on a certain level of continued retail interest for continued participation. Moneycontrol and other market observers have noted this concentration as a possible short-term headwind for the broader market.

In short:

• When there is more than one big IPO, mutual funds and institutional comanagers have to allocate capital — which means less fresh buying of smaller public stocks for a period of time.
• Retail investors have allocation fatigue: bigger IPOs require blocks of cash (ASBA/UPI) to keep money out until funded and until allotment takes place — reducing day-to-day capital and liquidity in the secondary market.

Financial health and growth outlook

Understanding Tata Capital’s more recent fundamentals indicates why this IPO attracted interest:

• Loan book & assets: Tata Capital has a big loan book (reported ~₹2.33 lakh crore) and total assets of ~₹2.52 lakh crore. Gross Stage 3 (analogous to gross NPA) is low, around 2.1%, which suggests generally good asset quality.
• Profit expansion: Net profit and net interest income have escalated strongly in recent years, enhancing the business’s measurable earnings base. Management indicates IPO proceeds will reinforce Tier-1 capital and promote lending growth for the next 2–3 years without the need for additional equity raises.

Investors should also keep an eye on interest-rate cycles, competition in the NBFC sector and execution risk on retail and housing loan growth.

What investors should watch 

• Subscription levels: Retail subscription and NII and QIB percentages at close. Strong retail subscription shows broad confidence.

• Final GMP movement: Increased GMP translates to possible listing gains, reduced GMP translates to caution.

• Anchor investor behaviour: Removing or otherwise changing an anchor's participation can change sentiment.

• Market liquidity and peer listings: Follow LG Electronics IPO calendar and second week large issues; demand for combined flow could affect secondary market..

• Listing day pricing and early day volume: To determine whether demand is genuine or front-loaded in grey markets.

🚨 India’s biggest IPO of 2025 is open

Tata Capital’s ₹15,512 crore issue is live

GMP at ~2%...🙃 pic.twitter.com/Pp95rs0beA

— Stocktwits India 🇮🇳 (@StocktwitsIndia) October 6, 2025

The IPO from Tata Capital is one of the largest of 2025 and represents risk to both fundamentals and timing. The range and early anchor support imply a broadly priced issue for long-term investors, but in and of itself, the size of the IPO, along with other big IPOs like LG Electronics, raises a question of tactical risk: is it somewhat likely to pull liquidity from secondary markets, even if for a brief period. Traders in the short-term should carefully follow the subscription ratios and GMP. Long-term investors should weigh the company’s balance sheet and growth plan against valuation and macro risks.

Disclaimer: The information in this article is meant for informational purposes only. Jobaaj.com does not offer investment advice. Investors are advised to conduct their own due diligence and consult certified financial experts before making investment decisions.