“Tata Capital’s IPO is likely to list on a flat note, with limited immediate upside,” said Raj Gaikar, research analyst at Samco Securities. “While the Tata brand adds credibility, the overall sentiment suggests that listing gains may be minimal, as investors who participated mainly for short-term returns are likely to exit post listing.”
Grey market prices indicate the stock could list at about ₹332-333.
The ₹15,512-crore initial public offering (IPO) of the Tata group company, the largest since Hyundai Motor India‘s ₹27,870 crore issues last year, was priced between ₹310 and ₹326 apiece.
The issue was subscribed 1.95 times, indicating moderate investor enthusiasm, Gaikar added.
SPTulsian Investment Advisers’ analyst Geetanjali Kedia, who had advised investors not to subscribe to the issue, is now recommending a sell on listing.”Upon listing, if there are profits, we advise booking gains. Otherwise, investors would be compelled to hold the stock for the long term,” she said.Analysts said investors keen on holding the shares must be willing to be patient, and fresh investors can wait for better opportunities to buy Tata Capital shares.
“While near-term listing performance might be subdued, the stock has potential to deliver superior gains over time as its financial performance sustains. Hence, longterm investors should stay invested, using a buy-and-hold approach rather than focusing on shortterm volatility or modest listing movement,” said Gaikar. For new investors, Gaikar suggests a wait-and-watch stance.
“Investors looking to add exposure to the NBFC space should closely track Tata Capital’s performance post-listing rather than rushing in,” he said. “Once the price stabilises, the stock could provide better clarity on a new entry point for those seeking longterm participation in the company’s growth story.”
Kedia suggests new investors should avoid buying its shares, and can look for other more attractive opportunities in the BFSI space.
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