Despite full subscription, the grey market premium (GMP) remains subdued, hovering around 1.8% above the issue price, signaling muted listing expectations. The IPO comprises a fresh issue of Rs 6,846 crore and an offer for sale (OFS) of Rs 8,666 crore by promoter Tata Sons, which currently holds a 95.6% stake in the company.
Tata Capital IPO Subscription Update
As of 11:50 AM on Day 3, the IPO had been subscribed 1.01 times overall, indicating that demand slightly exceeded the total shares on offer.
Retail Individual Investors (RIIs): This segment, for investors bidding up to Rs 2 lakh, subscribed 84% of the 16.61 crore shares allocated to them. The under-subscription suggests moderate interest among retail investors, possibly due to the muted GMP or overall market sentiment.
Non-Institutional Investors (NIIs): High-net-worth individuals (HNIs) and corporates subscribed 1.2 times their allocation of 7.11 crore shares, reflecting healthy interest from wealthier, risk-tolerant investors.
Qualified Institutional Buyers (QIBs): Comprising mutual funds, insurance companies, and foreign institutional investors, this segment also subscribed 1.2 times their quota of 9.49 crore shares, signaling institutional confidence in Tata Capital, though not overly bullish.
Tata Capital IPO GMP Today:
The GMP continues to be modest, trading at around Rs 6-8 above the issue price of Rs 326 per share, pointing to a likely listing price near Rs 332 -a marginal premium of approximately 1.8%. The subdued GMP indicates a cautious outlook in the grey market, suggesting that significant listing gains may not be assured at this stage.
Robust Anchor Investor Response
Ahead of its IPO, Tata Capital raised Rs 4,642 crore from anchor investors, attracting strong interest from both domestic and global institutions. The Life Insurance Corporation (LIC) of India emerged as the largest anchor, picking up 2.15 crore shares valued at nearly Rs 700 crore.
Significant allocations were also made to top mutual funds and asset managers, including ICICI Prudential, HDFC Mutual Fund, Aditya Birla Sun Life, DSP, Axis, Kotak, and Nippon Life AMC. On the international front, key investors included Morgan Stanley, Goldman Sachs, Nomura, and Norway’s sovereign wealth fund, the Government Pension Fund Global.
Tata Capital IPO: Price Band, Key Dates & Company Overview
IPO Price Band and Lot Size: Tata Capital has set its IPO price band between Rs 310 and Rs 326 per share. The minimum application requires a lot of 46 shares, amounting to Rs 14,996 at the upper price limit.
Allotment and Listing Dates : The basis of allotment is scheduled to be finalized on October 9, with the stock expected to list on the BSE and NSE on October 13.
A Major Milestone in India’s NBFC Sector: Tata Capital, a wholly owned subsidiary of Tata Sons, serves as the flagship financial services arm of the Tata Group. The company offers a broad spectrum of financial solutions, including retail, SME, and corporate lending, along with wealth management, investment banking, and the distribution of third-party financial products. Its diverse portfolio positions it as a key player in India’s financial services landscape.
As of June 2025, Tata Capital reported total assets of Rs 2.52 lakh crore and a gross loan book of Rs 2.33 lakh crore, establishing its position as the third-largest diversified non-banking financial company (NBFC) in India, after Bajaj Finance and Shriram Finance. With a gross non-performing asset (NPA) ratio of just 2.1%—one of the lowest in the sector—the company demonstrates strong asset quality. Its nationwide footprint spans 1,516 branches across 27 states and union territories, enabling wide-reaching customer access and service delivery.
Valuation and should you subscribe?
At the upper end of the price band, Tata Capital is valued at approximately 4.1 times its FY25 book value and 33 times its FY25 earnings, placing it slightly below the average valuation of listed peers in the NBFC sector. This pricing strategy is seen as offering a fair entry point for long-term investors.
Market analysts believe the IPO presents reasonable upside potential. Prashanth Tapse, Senior VP (Research) at Mehta Equities, commented, “Given current market sentiment, Tata Capital’s management has wisely priced the IPO a bit below the industry average, providing good room for a healthy listing gain.”
Proceeds from the fresh issue will be used to strengthen Tata Capital’s Tier-I capital base, supporting its future lending capacity and overall growth. Between FY23 and FY25, the company saw a 56% jump in revenue, while profit after tax rose 10% to Rs 3,655 crore—reflecting steady operational performance.
Backed by a strong balance sheet, a well-diversified loan portfolio, and the trust associated with the Tata Group, most brokerages have given the IPO a “Subscribe” rating, especially for long-term investors. Many are now watching to see whether Tata Capital can mirror the strong listing success of Tata Technologies’ IPO last year.
Brokerage views
Aditya Birla Money: “At the upper price band, the IPO is valued at 4.5x P/B (pre-issue) and 4.1x (post-issue) based on FY25 book value. We recommend a ‘SUBSCRIBE for the Long Term’ approach.”
Anand Rathi Research: “Tata Capital is trading at a P/E of 32.3x and a P/B of 3.5x on FY25 estimates, with a post-issue market cap of Rs 13,83,827 million. The issue is fairly valued, and we advise investors to Subscribe – Long Term.”
Canara Bank Securities: “Valued at 4x FY25 P/B, the IPO is in line with sector peers. The integration with Tata Motors Finance, AAA credit ratings, and a strong funding profile offer long-term benefits. While risks include regulatory shifts and interest rate volatility, India’s economic growth and digital trends support a positive outlook. We recommend a ‘Subscribe – Long Term’ stance.”
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