The International Finance Corporation (IFC), the world’s largest global development institution focused on the private sector in developing countries and a member of the World Bank Group, will earn Rs 1,078.31 crore from selling 3.5 crore shares in the IPO. IFC had acquired these shares at Rs 25 each.
Tata Capital, the flagship financial services arm of the Tata Group, is one of India’s largest diversified NBFCs. The IPO, priced between Rs 310 and Rs 326 per share, comprises a fresh issue of Rs 6,846 crore and an offer for sale (OFS) of Rs 8,666 crore by Tata Sons. The issue closes today, October 8, with listing expected on October 13.
Brokerages including Canara Bank Securities, Anand Rathi, BP Wealth, and Mehta Equities have called it a quality long-term play, citing Tata Capital’s strong retail and SME franchise, healthy asset quality, and digital lending focus as key drivers in India’s growing credit market.
Despite this, the grey market premium (GMP) signals a muted listing, as investors remain cautious about near-term gains. The IPO’s pricing leaves little room for short-term upside: at the upper price band, Tata Capital is valued at 4.2-4.3 times its post-issue book value, close to peers like Bajaj Finance and HDB Financial. Analysts note that much of the positive outlook, including its strong balance sheet, is already priced in.
Other factors tempering expectations include a robust IPO pipeline that stretches liquidity and the company’s merger with Tata MotorFinance, which has impacted consolidated profitability and asset quality. These metrics particularly affect investors focused on short-term returns.Despite these near-term headwinds, experts say Tata Capital’s diversified portfolio across retail, SME, and corporate lending positions it well to benefit from India’s strong credit demand over the coming years.(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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