October 9, 2025

Mumbai is watching two big IPOs closely, and their grey market prices tell very different stories! Tata Capital’s grey market premium—extra money investors pay unofficially above the IPO price—has shrunk to a mere ₹5 per share, just 1.5% above its top price of ₹326. Meanwhile, LG Electronics is sizzling hot, with shares priced about ₹312 more, a whopping 27.4% above their top offer price of ₹1,140. So, what’s cooking here? Experts say Tata Capital’s price feels a bit too spicy compared to its rivals. Gaurav Sharma, head of research at Globe Capital Market, said, "The grey market premium of Tata Capital IPO has been on a declining trend since the announcement of the price band, as the pricing of the stock is slightly on the higher side when compared with its peers." On the flip side, LG Electronics is getting a festive season boost, thanks to GST cuts, strong brand pull, and fair valuation in the white goods sector. Sharma adds, "The premium for LG has been rising given the expectations of gains on listing." Looking back, Tata Capital’s grey market premium has tumbled from ₹31 to just ₹5 since September 29. On September 26, it was ₹50! In contrast, LG Electronics’ premium jumped dramatically from ₹150 (or 13%) on October 1 to ₹312 (or 27.3%) within just a week. Why does this matter? Traders watch these unofficial prices closely to guess how well these stocks will perform when they officially list. A higher grey market premium means excited buyers expect the stock to zoom, while a low premium signals modest gains. Tata Capital’s IPO, open from October 6 to October 8, saw a subscription of 0.75 times by its second day, meaning demand is okay but not super hot. Experts still think the issue will succeed. LG Electronics, in its subscription window from October 7 to 9, already hit 1.04 times subscription on day one—a confident start! Geetanjali Kedia from SPTulsian Investment Advisers warns, "At the current IPO pricing for Tata Capital, valuations appear stretched, leaving limited upside for investors." Meanwhile, Apurva Sheth, head of Research at Samco Securities, notes how Tata Capital’s share price journey—from ₹1,100 in the unlisted market to ₹720 before IPO filing, and then ₹326 after pricing—has cooled investor enthusiasm. To sum up, Tata Capital’s IPO seems priced on the higher side, making investors cautious, while LG Electronics is basking in festive glow and strong expectations. Investors are watching closely as these two big IPOs try to win hearts and wallets! (Stay tuned to ETMarkets for all the latest buzz on IPOs, market moves, and expert tips!)

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Tags: Tata capital ipo, Lg electronics ipo, Grey market premium, Ipo subscription, Stock market, Investor sentiment,