Tata Capital IPO: Early Response Modest Despite Strong Tata Brand

Tata Capital’s initial public offering (IPO) is one of the most anticipated listings of 2025, closing for bidding on October 8. While the company enjoys a strong brand reputation and steady growth, early subscription data and grey market trends suggest a modest response so far.

As per stock exchange data, by 5:04 pm on October 7, the IPO was subscribed 0.75 times overall. The retail category saw 0.68 times subscription, Qualified Institutional Buyers (QIBs) 0.86 times, and Non-Institutional Investors (NII) 0.76 times. Against the offer size of 33.34 crore shares, bids have been placed for about 25.02 crore shares.

The IPO, valued at Rs 15,511.87 crore, consists of a fresh issue of Rs 6,846 crore and an offer for sale (OFS) of Rs 8,665.87 crore. The price band is set between Rs 310 and Rs 326 per share. Grey market trends indicate limited listing gains, with the last reported grey market premium (GMP) at Rs 6, implying an estimated listing price of Rs 332 — a gain of 1.84% over the upper band.

Tata Group IPO Track Record

Tata Group companies have historically been strong performers on Dalal Street. Notable IPOs include Tata Power (1996), Tata Consumer Products, Tata Motors, Tata Steel (1998), Tata Chemicals (1999), Tata Elxsi (2003), TCS and Titan (2004), Tata Communications (2008), and Tata Technologies (2023) — the latter listing at a 140% premium over its issue price.

Why Investors Are Watching Tata Capital

Analysts highlight Tata Capital’s diversified financial portfolio, brand credibility, and technology-driven operations as key strengths. The merger with Tata Motors Finance Ltd (TMFL) strengthens vehicle finance capabilities and operational efficiency.

The company reported 33.4% revenue growth in FY24 and 55.8% in FY25, with net profits rising 4% and 16.3%, respectively. At the upper price band of Rs 326, the IPO values the company at a market cap of Rs 1,38,383 crore, with a price-to-book ratio of 3.2x, lower than peers’ average of 4x.

Rajan Shinde, Research Analyst at Mehta Equities Ltd, recommends a long-term investment perspective: “Tata Capital offers a credible and scalable proxy to participate in India’s NBFC growth cycle. Investors should consider subscribing for long-term gains.”