Tata Capital’s initial public offering (IPO) is one of the most awaited listings of 2025, with investors watching closely as the issue closes for bidding on October 8.
While the company enjoys strong brand credibility and steady growth, early subscription data and grey market trends indicate a modest response so far.
According to stock exchange data, the Tata Capital IPO was subscribed 0.75 times by 5:04 pm on October 7. The retail category was subscribed 0.68 times, the Qualified Institutional Buyers (QIB) portion 0.86 times, and the Non-Institutional Investors (NII) portion 0.76 times. Against the offer size of 33.34 crore shares, the IPO has received bids for about 25.02 crore shares so far.
Tata Capital IPO, valued at Rs 15,511.87 crore, comprises a fresh issue of Rs 6,846 crore and an offer for sale (OFS) of Rs 8,665.87 crore. The price band has been fixed between Rs 310 and Rs 326 per share.
However, early signals from the grey market show limited listing gains. The last reported grey market premium (GMP) for Tata Capital stood at Rs 6 on October 8, implying an estimated listing price of Rs 332 per share — a gain of just 1.84% over the upper end of the price band.
HOW PREVIOUS TATA GROUP IPOS HAVE PERFORMED
Investors considering Tata Capital’s IPO often look at the track record of Tata Group companies, which have a strong presence on Dalal Street. Tata Power was the group’s first IPO in 1996, followed by Tata Consumer Products, Tata Investment Corporation, Tata Motors, and Tata Steel in 1998. Tata Chemicals went public in 1999, while Tata Elxsi followed in 2003.
In 2004, Tata Consultancy Services (TCS) and Titan Company launched their IPOs, both of which have gone on to become long-term market favourites. Tata Communications came next in 2008, and after a gap of 15 years, Tata Technologies debuted in November 2023. That IPO turned into a blockbuster, listing at a 140% premium to its issue price — making it one of the most successful listings in recent years.
Given the group’s reputation for strong governance, consistent performance, and long-term wealth creation, many investors see Tata Capital’s IPO as a safe bet for steady returns rather than quick gains.
SHOULD YOU INVEST IN TATA CAPITAL IPO?
Analysts have expressed cautious optimism about the IPO. According to Rajan Shinde, Research Analyst at Mehta Equities Ltd, Tata Capital’s strength lies in its diversified portfolio, brand credibility, and expanding financial services presence.
“We believe Tata Capital IPO brings investors an opportunity to invest in India’s financial services space, combining scale, diversification, and strong brand credibility under the Tata Group,” said Shinde.
He added, “The company’s advanced technology and analytics capabilities enhance underwriting, collections, and cross-selling, while the merger with TMFL expands its vehicle finance portfolio and strengthens operational efficiency.”
On the financial front, Tata Capital has reported steady growth. Its revenue from operations rose 33.4% in FY24 and 55.8% in FY25, while net profits increased by 4% and 16.3% respectively during the same period.
“At the upper price band of Rs 326, the IPO values the company at a market cap of Rs 1,38,383 crore. Based on FY26 annualised earnings and post-IPO capital, the price-to-book ratio of 3.2x appears reasonable compared to around 4x for its peers,” said Shinde. “We believe Tata Capital offers investors a credible and scalable proxy to participate in the broader NBFC growth cycle. Hence, we recommend investors to ‘subscribe’ to the IPO with a long-term perspective.”
