Tata Capital IPO opens today: Check GMP, brokerages review, subscription and other details – News Air Insight

After months of anticipation, Tata Capital’s Rs 15,512-crore IPO, one of the biggest this year, will open for subscription on Monday. The IPO will close on Wednesday. Ahead of the issue opening, the GMP is muted at around 3% over the issue price. The issue comprises a fresh issue worth Rs 6,846 crore and an offer for sale (OFS) of Rs 8,666 crore by promoter Tata Sons, which currently holds 95.6% in the company.

Strong anchor investor participation

Ahead of the IPO launch, Tata Capital raised Rs 4,642 crore from anchor investors, including marquee domestic and global funds. Life Insurance Corp (LIC) of India was the single largest investor, taking 2.15 crore shares worth nearly Rs 700 crore.

Other big allocations went to ICICI Prudential schemes, HDFC Mutual Fund, Aditya Birla Sun Life, DSP, Axis, Kotak, and Nippon Life AMC. Among foreign institutions, Morgan Stanley, Goldman Sachs, Nomura, and the Government Pension Fund Global (Norway’s sovereign wealth fund) figured prominently.

Tata Capital IPO price band

The price band has been fixed at Rs 310–326 per share, with investors able to bid for a minimum lot of 46 shares (Rs 14,996 at the upper end).

Also Read: Tata Capital IPO: Brokerages bullish even as GMP shows mixed trends. Should you subscribe?

One of India’s most awaited NBFC listings

A subsidiary of Tata Sons, Tata Capital is the flagship financial services arm of the Tata Group. It offers a full range of retail, SME, and corporate loans, wealth management, investment banking, and distribution of third-party financial products.As of June 2025, Tata Capital had total assets of Rs 2.52 lakh crore, and gross loans of Rs 2.33 lakh crore, making it the third-largest diversified NBFC in India after Bajaj Finance and Shriram Finance.
Its gross NPA stood at 2.1%, one of the lowest in the industry. The company’s network spans 1,516 branches across 27 states and union territories.

Valuation

At the upper end of the price band, Tata Capital is valued at 4.1 times FY25 book value and 33 times FY25 earnings — marginally below the industry average.

Analysts believe the pricing leaves adequate headroom for long-term investors. “Considering market sentiment, Tata Capital’s management has sensibly priced the IPO slightly below the industry average, leaving decent headroom for a healthy listing pop,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.

What investors should know

Proceeds from the fresh issue will augment Tier-I capital to support future lending growth. Over FY23–FY25, Tata Capital’s revenue surged 56%, while profit after tax rose 10% to Rs 3,655 crore.

Given its balance-sheet strength, diversified lending base, and Tata Group backing, brokerages broadly maintain a “Subscribe” view on the IPO. The Street will closely watch whether this mega issue can replicate the success of Tata Technologies’ blockbuster debut last year.

Tata Capital IPO allotment and listing dates

The stock is expected to list on BSE and NSE on October 13, while the share allotment will be finalised on October 9.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)