India's primary market is buzzing with activity as several major companies gear up for their Initial Public Offerings (IPOs). The upcoming IPOs are expected to raise a combined total of over Rs 27,000 crore, reflecting the robust appetite for new listings in one of the world's fastest-growing economies.

Key IPOs on the Horizon

Tata Capital: Leading the Pack

Tata Capital is set to launch the largest IPO of the year, with a massive Rs 15,512.00 crore offering scheduled for October 6-8. This IPO will combine fresh shares and an offer for sale (OFS) from Tata Sons and IFC, showcasing the Tata Group's commitment to expanding its financial services arm.

LG Electronics India: A Pure OFS Play

LG Electronics India has launched a substantial Rs 11,607.00 crore IPO, running from October 7-9. This offering is entirely an offer for sale, indicating that existing shareholders are looking to monetize their holdings in the Indian subsidiary of the Korean electronics giant.

EdTech Goes Public: PhysicsWallah's Expansion Plans

In an interesting move from the edtech sector, PhysicsWallah has filed for a Rs 3,820.00 crore IPO. The company plans to use the funds for offline expansion and potential acquisitions, signaling a shift in strategy for the digital-first education platform.

PhonePe: The Fintech Contender

Walmart-backed PhonePe has filed confidential papers for an estimated Rs 12,000.00 crore offering. The fintech giant's move comes on the heels of reporting narrowed losses and an impressive 40.5% revenue growth, highlighting the maturing fintech landscape in India.

NSE: The Long-Awaited Listing

The National Stock Exchange, India's leading stock exchange, is still awaiting regulatory clearance for its long-anticipated IPO. The listing of NSE is expected to be a landmark event in the Indian financial markets.

Market Sentiment and Investor Participation

The surge in IPO activity is driven by companies seeking expansion capital in India's growing economy. Strong domestic investor participation has been a key factor supporting this trend, with retail and institutional investors showing keen interest in new offerings.

October's IPO proceeds are expected to exceed $5 billion, underscoring the robust health of India's primary market. This influx of new listings is likely to provide investors with diverse opportunities across sectors, from financial services to technology and consumer electronics.

As these companies prepare to go public, market observers will be closely watching their performance, which could set the tone for future IPOs and overall market sentiment in the coming years.

Tata Capital's much-anticipated Initial Public Offering (IPO) continues to draw investor interest on its second day of bidding. The Rs 15,512 crore IPO, one of the largest in recent times, has seen a subscription rate of 39% by the end of day two.

Subscription Details

The IPO, which opened for public subscription on March 13, has received bids for 12.86 crore shares against the 33.34 crore shares on offer. Here's a breakdown of the subscription rates across investor categories:

IPO Structure and Pricing

The Tata Capital IPO comprises a fresh issue of Rs 6,846 crore and an offer for sale worth Rs 8,666 crore by promoter Tata Sons. The company has set the price band at Rs 326 per share.

Grey Market Performance

Despite the Tata brand's strong reputation, the grey market premium for Tata Capital shares remains modest at 3.7% above the issue price, indicating cautious sentiment among unofficial market participants.

Anchor Investment

Prior to the public offering, Tata Capital secured Rs 4,642 crore from anchor investors. Notably, Life Insurance Corporation of India (LIC) emerged as the largest anchor investor, committing Rs 700 crore to the IPO.

Company Valuation and Financials

At the upper end of the price band, Tata Capital is valued at:

• 4.1 times its book value
• 33 times its earnings

These multiples position the company slightly below the industry average. Key financial highlights include:

Brokerage Recommendations

Most brokerages have recommended subscribing to the Tata Capital IPO for long-term investment. Their positive outlook is based on:

1. The company's strong balance sheet
2. Backing of the reputable Tata Group

Investor Takeaway

While the subscription rates show steady demand, they also reflect a measured approach from investors. The modest grey market premium suggests that market participants are weighing the company's strong fundamentals against the current market conditions and valuation.

As the IPO enters its final day, all eyes will be on whether institutional and retail demand picks up, potentially driving the overall subscription rate higher. Investors should consider their risk appetite and investment horizon when deciding on participation in this significant market event.