The 'other side' of India's IPO 'factory' as market gears for big listings

Core Insights - Tata Capital's IPO is the largest in India for 2025, with an issue size of nearly $2 billion and subscriptions around $2.5 billion, achieving full subscription over a three-day period [1][2] - The unlisted market rates suggest a subdued listing around the issue price of approximately 326 rupees per share, contrasting with the speculative rates [1][2] - In comparison, LG Electronics India's IPO broke records, being subscribed over 54 times with bids close to $50 billion, indicating a stark difference in market reception [3] Subscription and Market Performance - The subscription for Tata Capital was primarily driven by large institutional investors, while retail investor participation saw full subscription [2] - Other smaller IPOs have faced challenges, with two companies listing at discounts of 35% to 40% compared to their issue prices, highlighting a mixed performance in the IPO market [5][6] - More than 50% of recent IPOs are trading below their issue prices or yielding only single-digit returns, indicating a cautious market environment [7] Market Sentiment and Valuation Concerns - There are concerns regarding the valuations in the current IPO rush, with some analysts suggesting the market may be overcrowded [4] - The recent IPO landscape has shown both extremes, with some companies receiving hefty bids while others have listed at significant discounts, reflecting a divided market sentiment [6]