The highly anticipated initial public offering (IPO) of Tata Capital Limited (TCL) opened for subscription on October 6, 2025, and will close on October 8, 2025.
Shares will be listed on the NSE and BSE, with trading expected to begin on October 13. As the flagship financial services arm of the Tata Group, the issue has generated significant market interest.
The price band has been set at Rs 310 to Rs 326 per share, with a lot size of 46 shares. This means retail investors need a minimum of Rs 14,260 to participate.
KEY IPO DETAILS
The IPO consists of a fresh issue of 21 crore shares and an offer for sale of 26.58 crore shares, bringing the total to 47.58 crore shares. Promoter Tata Sons is offloading 23 crore shares, while International Finance Corporation is selling 3.58 crore shares.
Funds raised from the fresh issue will be deployed to augment Tata Capital’s Tier-I capital, helping it meet future growth and lending requirements.
In terms of scale, 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 has grown at a compound annual rate of 37.3% between March 2023 and March 2025, making it one of the fastest-growing large NBFCs.
The company’s asset quality remains robust, with a gross Stage 3 loan ratio of 2.1% and a provision coverage ratio of 53.9%, which are among the best in the sector. Tata Capital has served over 7.3 million customers since it began lending in 2007, with nearly 88% of its loan portfolio focused on retail and SME borrowers.
SUBSCRIBE OR SKIP?
Analysts at Anand Rathi note that Tata Capital’s omni-channel model—spanning 1,516 branches, digital platforms, and partner tie-ups—underpins its growth and customer reach. The brokerage points out that 80% of loans are secured, and over 98% of accounts are small-ticket loans, which lowers concentration risk.
At the same time, Tata Capital is leveraging analytics and digital tools to strengthen underwriting and reduce credit costs.
On valuation, Anand Rathi highlights that the IPO is fully priced. At the upper end of the band, Tata Capital is valued at a price-to-earnings ratio of 32.3 times and a price-to-book of 3.5 times FY25 earnings, translating into a post-issue market cap of nearly Rs 13.84 lakh crore.
Despite the steep valuation, the brokerage recommends a “Subscribe – Long Term” rating, citing the company’s strong growth record, governance pedigree, and risk management framework.
LATEST GMP
Meanwhile, grey market activity suggests a premium of Rs 20 to Rs 24 over the issue price, indicating potential listing gains of around 6–7%.
While this may appeal to short-term investors, the bigger opportunity, according to experts, lies in holding the stock for the long haul, as India’s credit demand continues to expand.
For retail applicants, the decision comes down to risk appetite.
The Tata brand, diversified lending portfolio, and robust asset quality make it an attractive candidate for long-term portfolios. However, given the full pricing, those expecting immediate windfall returns should temper expectations.
