Tata Capital IPO 2025: GMP, Key Details, Should You Subscribe?

The much-awaited Tata Capital Limited (TCL) IPO opened for subscription on October 6, 2025, and will close on October 8, 2025. Trading on the NSE and BSE is expected to begin on October 13, 2025.

As the flagship financial services arm of the Tata Group, the IPO has generated significant market interest.

Price Band and Lot Size

The price band has been fixed at Rs 310 to Rs 326 per share, with a lot size of 46 shares, requiring a minimum investment of Rs 14,260 for retail investors.

Key IPO Details

The issue comprises:

• Fresh issue: 21 crore shares

• Offer for sale: 26.58 crore shares

• Total shares: 47.58 crore

Promoter Tata Sons is selling 23 crore shares, while International Finance Corporation (IFC) is offloading 3.58 crore shares.

Proceeds from the fresh issue will be used to augment Tier-I capital, supporting future growth and lending requirements.

Tata Capital is the third-largest diversified NBFC in India, with gross loans of Rs 2,334 billion as of June 30, 2025. Its loan book grew at a 37.3% CAGR between March 2023 and March 2025. The company serves over 7.3 million customers, with 88% of loans in retail and SME segments.

The company maintains strong asset quality, with a gross Stage 3 loan ratio of 2.1% and a provision coverage ratio of 53.9%.

Should You Subscribe?

Analysts at Anand Rathi highlight Tata Capital’s omni-channel model—1,516 branches, digital platforms, and partnerships—as a growth driver. With 80% of loans secured and 98% small-ticket accounts, concentration risk is low.

Tata Capital also leverages analytics and digital tools to enhance underwriting and reduce credit costs.

At the upper end of the price band, the valuation stands at:

• P/E ratio: 32.3x FY25 earnings

• Price-to-book: 3.5x

• Post-issue market cap: ~Rs 13.84 lakh crore

Despite the full pricing, the brokerage recommends a “Subscribe – Long Term” rating, citing strong growth, governance, and risk management.

Grey Market Premium (GMP)

Grey market activity suggests a premium of Rs 20-24, translating to 6–7% potential listing gains. While this may attract short-term investors, experts emphasize long-term holding due to growing credit demand in India.

For retail investors, participation depends on risk appetite:

• Long-term investors: Tata Capital’s diversified portfolio and strong fundamentals make it attractive.

• Short-term gains: Limited upside due to full pricing; temper expectations.

(Disclaimer: The views and recommendations in this article are for informational purposes only. Consult a qualified financial advisor before making investment decisions.)