The Rs 15,512-crore Tata Capital IPO was fully subscribed 1.95 times, led by Qualified Institutional Buyers (QIBs). The Retail Individual Investors (RIIs) portion was subscribed 1.10 times, while the Non-Institutional Investors (NIIs) quota was booked 1.98 times over the three-day bidding period. QIBs booked their allotted shares 3.42 times.
The Tata Group NBFC had set the IPO price band between Rs 310 and Rs 326 per share, which was 56% lower than the company’s unlisted shares. The minimum application required a lot of 46 shares, amounting to Rs 14,996 at the upper price limit.
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 recorded a 56% jump in revenue, while profit after tax rose 10% to Rs 3,655 crore, reflecting steady operational performance.
Tata Capital IPO GMP
The grey market premium (GMP) on Tata Capital’s shares was on a steady decline, falling from Rs 8 before the IPO opened to Rs 5 in the last recorded session.
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, acquiring 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.
About Tata Capital
A wholly-owned subsidiary of Tata Sons, Tata Capital 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 third-party financial product distribution. Its diversified portfolio positions it as a key player in India’s financial services sector.
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, making it the third-largest diversified 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 extensive customer access and service delivery.
Valuation and analyst view
At the upper end of the price band, Tata Capital was valued at approximately 4.1x its FY25 book value and 33x FY25 earnings, slightly below the average valuation of listed NBFC peers. The stock listed at a modest premium, considered a fair entry point for long-term investors.
Backed by a strong balance sheet, diversified loan portfolio, and the Tata Group brand, most brokerages had given the IPO a “Subscribe” rating”, particularly for long-term investors.
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