LG Electronics vs Tata Capital IPO: Which is Better?
In the rapidly evolving landscape of Initial Public Offerings (IPOs) in India, LG Electronics India and Tata Capital are catching the attention of investors. LG's IPO, which is priced between ₹1,080 and ₹1,140, represents a significant moment as it becomes the second South Korean company to be listed on Indian stock exchanges after Hyundai Motors.
According to Prashanth Tapse, Senior Vice President of Research at Mehta Equities Ltd, the Tata Capital IPO offers a compelling investment opportunity for conservative long-term investors in India's financial services sector. The Tata Group is known for its strong brand credibility, and Tata Capital has shown consistent growth in revenue and profitability.
At an upper price band of ₹326, Tata Capital is aiming for a market capitalization of ₹1,38,383 crore. Tapse notes that the pricing at a PB of 3.2x seems reasonable compared to its peers, suggesting strong long-term value creation potential.
For those investors looking for a balance between immediate listing gains and long-term growth, the LG Electronics India IPO presents an attractive opportunity. As a market leader in various consumer electronics segments, including washing machines, refrigerators, and televisions, LG Electronics has established a solid position in the Indian market.
Experts believe that the ongoing festive season, along with rising consumer incomes and GST-related benefits, will fuel robust growth in the home appliances sector, enhancing the company's performance in upcoming quarters.
In the grey market, Tata Capital's GMP stands at ₹12.5, indicating that shares are trading at a premium. This suggests an estimated listing price of ₹338.5, which is 3.83% higher than the IPO price. However, the GMP has shown a downward trend recently, sparking concern among investors.
On the other hand, LG Electronics’ GMP is reported at ₹318, indicating a strong demand and an expected listing price of ₹1,458, which is a substantial 27.89% higher than the IPO price. This upward trend in GMP suggests a positive outlook for LG Electronics on listing day.
In summary, both IPOs present unique opportunities for investors. Tata Capital is positioned well for stable growth in financial services, while LG Electronics offers potential for significant gains in the consumer electronics market. Investors are advised to consider both options carefully and consult certified experts before making investment decisions.
