Overview of the Tata Capital IPO Launch
The highly anticipated initial public offering (IPO) of Tata Capital officially opened for public bidding on October 6, 2025. The non-banking financial company (NBFC), part of the prestigious Tata Group, is seeking to raise a substantial ₹15,512 crore, marking one of the largest IPOs in recent years.
By the end of the first day of bidding, the issue had been subscribed 38%, with investors placing bids for approximately 12.58 crore shares against a total offer size of 33 crore shares, according to data from the National Stock Exchange (NSE) as of 4:15 PM.
Subscription Breakdown by Investor Category
- Qualified Institutional Buyers (QIBs) led the charge, subscribing to 52% of their allotted quota.
- Retail investors contributed a subscription rate of 34%.
- Non-Institutional Investors (NIIs) followed with 27% of their portion booked.
This diverse participation reflects early but cautious optimism in the market.
Tata Capital IPO: Details and Structure
Tata Capital’s public offering comprises:
- A fresh issue of shares worth ₹6,846 crore
- An offer for sale (OFS) component of ₹8,666 crore by existing stakeholders, notably Tata Sons and International Finance Corporation (IFC), which involves the sale of 26.58 crore equity shares
Key IPO Facts:
- Price band: ₹310 – ₹326 per share
- Issue open: October 6 – October 8
- Allotment finalization: Expected by October 9
- Listing date: Scheduled for October 13 on BSE and NSE
- Minimum bid: 46 shares (₹14,996 at upper band), with bids in multiples thereafter
The company, currently valued at over ₹1.31 lakh crore, intends to utilize proceeds from the fresh issue to augment its Tier-I capital base, supporting future lending and growth. Proceeds from the OFS will be directed to the selling shareholders.
Market Sentiment and Grey Market Premium (GMP)
Ahead of the official listing, Tata Capital’s shares are witnessing modest traction in the unlisted market:
- Investorgain reports a 4% grey market premium (GMP) over the IPO price
- IPO Watch estimates the GMP at approximately 2%
These subdued premiums suggest measured investor enthusiasm, possibly influenced by the IPO’s premium pricing.
Analyst Opinions: Should You Subscribe?
Long-Term Investment Potential
Financial analysts are broadly positive on Tata Capital’s long-term prospects, citing its diversified lending book, robust risk management, and strategic position within the Tata ecosystem.
“Despite being fully priced, the IPO offers long-term investors a rare opportunity to invest in a solid NBFC with a proven track record,” said Siddharth Maurya, Founder & MD, Vibhavangal Anukulakara. “Tata Capital is well-poised to ride the wave of India’s growing credit market.”
Industry Advantage for NBFCs
According to Master Capital Services, NBFCs are steadily gaining market share due to their agility in offering flexible, customized lending solutions and deeper geographic penetration. Tata Capital, being India’s third-largest diversified NBFC, is seen as well-positioned to benefit from these industry trends.
Brand Power and Valuation Concerns
Choice Broking also recommends subscribing with a long-term horizon, though they flag the rich valuation as a point of caution.
“Tata Capital is expected to list close to ₹326 per share, giving it a P/E ratio of approximately 34 — on par with premium players like Bajaj Finance,” noted Shravan Shetty, Managing Director, Primus Partners. “This premium is justified by the strength of the Tata brand and the company’s consistent operational performance.”
Final Take: Strategic Investment Opportunity with Brand Backing
Tata Capital’s IPO stands out as the largest public issue of 2025 and one of the most significant in India since Hyundai Motor India’s ₹27,859 crore IPO. While the valuation is on the higher side, analysts believe the company’s solid fundamentals, brand value, and growth trajectory make it an attractive proposition for investors seeking long-term exposure to India’s thriving NBFC sector.
