The issue received bids for 1.06 times the shares on offer, according to data from the exchanges. The qualified institutional buyers (QIB) category was subscribed 1.28 times, while non-institutional investors (NII) subscribed 1.19 times. The retail investor portion, however, remained relatively muted at 86%, indicating that small investors adopted a measured approach despite the Tata brand appeal.
3 factors taking the charm away from Tata Capital IPO. Is it still a buy on last day?
If the current trends sustain, the IPO could even be a flat to mildly negative listing. “The IPO was fairly valued given the strong parentage and growth record, but the issue size was large, leaving limited room for sharp listing gains.”
Tata Capital, the financial services arm of Tata Sons, is a diversified NBFC with interests in retail loans, housing finance, infrastructure finance, and wealth management. The company has a presence across 500 branches and caters to over 40 lakh customers. Its strong balance sheet, high credit rating, and consistent growth have made it one of India’s most trusted NBFC brands.
“At around 4 times FY25 book value, Tata Capital’s pricing factored in much of the near-term optimism. While long-term investors may still find comfort in its fundamentals, immediate listing gains appear limited,” said Shruti Jain of Arihant Capital.
Market observers expect the stock to list with marginal gains, likely in the Rs 326-330 range against the issue price of Rs 326 per share.
“The brand strength and growth outlook could support the stock post-listing, but the lack of retail frenzy and a cooling GMP make a strong debut unlikely,” said another analyst.
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