Can LG and Tata Capital break the Rs 10,000-crore IPO curse?

For nearly three years, India’s mega IPO market – defined by issues over Rs 10,000 crore – has been a thorn in investor sentiment. The likes of Paytm, LIC, and Coal India all promised to reshape the market but instead left investors nursing losses.

Before Hyundai, seven of the last eight such mega listings had traded below their issue price within one year. However, that gloomy trend now seems to be reversing.

The recent performance of newer large listings such as Hyundai Motor India, Swiggy, and HDB Financial suggests that the Rs 10,000-crore IPO curse may finally be easing.

Three of the last four such issues are now trading above their listing price, hinting that India’s biggest IPOs might be regaining investor confidence, thanks to more reasonable valuations and stronger fundamentals.

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The tide begins to turn


Hyundai India, which listed at Rs 1,960 per share, now trades around Rs 2,509, a solid 28% premium to its issue price. Swiggy, once among India’s most debated tech IPOs, has also stayed in the green, climbing from Rs 390 to Rs 414.

HDB Financial Services, which faced initial skepticism after its listing, is trading slightly above its Rs 740 issue price at Rs 757 within three months.

Only NTPC Green Energy has lagged, slipping below its issue price to Rs 97, as investors continue to weigh near-term execution challenges despite its strong renewable energy story.

Cheaper valuations, smarter pricing


A lesson learned from earlier IPO disappointments, both LG Electronics India and Tata Capital—the two upcoming Rs 10,000-crore-plus issues—appear to have been priced with this new realism in mind.

According to Prashanth Tapse, Senior VP (Research) at Mehta Equities, “Tata Capital’s management has sensibly priced the IPO slightly below the industry average, leaving decent headroom for a healthy listing pop and making it more attractive for fresh investors. Its annualised FY26 earnings imply a P/BV of around 3.2x versus 4x for peers.”

He adds, “Tata Capital should be viewed as a long-term structural story. The NBFC sector, backed by its focus on underbanked and higher-yield segments, continues to outperform traditional banking. As one of the most diversified NBFCs in India under the Tata Group, it is well placed to capture the next wave of financial services expansion.”

Read More: Battle of NBFC giants: Should you invest in Tata Capital IPO or one of Bajaj Finance and HDB Financial?

LG Electronics India: A strong consumer play at fair value


Analysts are equally optimistic about LG Electronics India’s debut, which opens on October 7. SBI Securities, in its IPO note, has given a “Subscribe” recommendation, calling LG one of the largest and most innovative consumer durable players in India.

At the upper price band of Rs 1,140, LG is valued at 35.1x FY25 earnings, which analysts say is fair compared to peers, given its strong growth visibility, innovation pipeline, and deep distribution network.

The company commands leadership across multiple categories—washing machines (33.5% share), refrigerators (29.9%), air conditioners (20.6%), and microwaves (51.4%). With a 28-year presence in India and over 35,000 retail touchpoints, LG India’s home appliance and air solutions segment contributes around 75% of its revenue.

Read More: Subscribe for long-term or listing gains? Here's what top 10 brokerages said on Tata Capital IPO

Can the comeback last?


With LG Electronics India and Tata Capital, both backed by strong parent groups and disciplined pricing, set to hit the markets this week, investors appear more optimistic than they have been in years. If these issues list successfully and hold their ground, they could finally break the long-standing Rs 10,000-crore IPO curse.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)