Tata Capital’s highly anticipated Rs 15,512 crore IPO, one of the largest public offerings in India for 2025, opened for subscription on Monday, October 6, 2025, and will remain open until Wednesday, October 8, 2025. The IPO has generated significant investor interest, with strong early subscription numbers indicating confidence in the Tata Group’s flagship NBFC.
Tata Capital IPO: Key Details at a Glance
Price Band and Lot Size
- Price Band: Rs 310–Rs 326 per share
- Lot Size: 46 shares
- Minimum Investment: Rs 14,996 (at upper price band)
- Issue Size: Rs 15,512 crore
IPO Structure and Share Distribution
The IPO comprises a carefully structured combination of fresh equity and an offer for sale:
- Fresh Issue: Rs 6,846 crore (21 crore shares)
- Offer for Sale (OFS): Rs 8,666 crore (26.58 crore shares)
- Total Shares Offered: 47.58 crore shares
- Dilution: Approximately 11%
The OFS component includes shares from:
- Tata Sons: Up to 23 crore shares (currently holds 95.6% stake)
- International Finance Corporation (IFC): Up to 3.58 crore shares
Important Dates
- Subscription Opens: October 6, 2025
- Subscription Closes: October 8, 2025
- Allotment Date: October 9, 2025 (expected)
- Listing Date: October 13, 2025 (expected)
- Exchanges: BSE and NSE
Tata Capital IPO Day 1 Subscription Status
The IPO witnessed strong early momentum, with subscription reaching 15% within the first hour of bidding, signaling robust investor appetite. This early traction reflects confidence in the Tata brand and the company’s growth trajectory.
Grey Market Premium (GMP)
The grey market premium stood at approximately 3% over the issue price ahead of the opening, suggesting modest but positive market sentiment.
Use of IPO Proceeds
The funds raised through the fresh issue (Rs 6,846 crore) will be utilized for:
- Augmenting Tier-I capital base: Strengthening the company’s capital adequacy
- Corporate purposes: Supporting business expansion and growth initiatives
The OFS proceeds (Rs 8,666 crore) will go directly to selling shareholders—Tata Sons and IFC—and not to the company.
Tata Capital: Financial Performance and Market Position
Strong Financial Track Record
Tata Capital has demonstrated impressive financial growth:
FY25 Performance:
- Profit After Tax (PAT): Rs 3,655 crore (up from Rs 3,327 crore in FY24)
- Revenue: Rs 28,313 crore (up from Rs 18,175 crore in FY24)
As of June 2025:
- Total Assets: Rs 2.52 lakh crore
- Gross Loans: Rs 2.33 lakh crore
Market Standing
Tata Capital is India’s third-largest diversified NBFC, trailing only Bajaj Finance and Shriram Finance. This strong market position reflects the company’s diverse product portfolio and extensive reach across consumer, commercial, and infrastructure finance segments.
Should You Subscribe to Tata Capital IPO? Expert Recommendations
Anand Rathi Share & Stock Brokers: ‘Subscribe’
The brokerage has assigned a ‘Subscribe’ rating to the IPO, citing:
- Strong loan-book growth momentum
- Stable net interest margins
- Low credit costs
- Attractive pricing compared to industry peers
- Healthy market debut expectations with solid long-term growth potential
Mehta Equities Analysis
Prashanth Tapse, Senior VP at Mehta Equities, noted that the pricing strategy is investor-friendly. “Considering market sentiment, Tata Capital’s management has sensibly priced the IPO slightly below the industry average, leaving decent headroom for a healthy listing pop,” he stated.
The consensus among market experts suggests the IPO offers adequate headroom for long-term investors, with pricing that balances current valuations while providing upside potential.
Key Investment Highlights
Strengths
- Brand Trust: Part of the prestigious Tata Group ecosystem
- Diversified Portfolio: Presence across multiple lending segments
- Strong Capital Base: Robust balance sheet with Rs 2.52 lakh crore in assets
- Consistent Growth: Year-on-year improvement in revenue and profitability
- Market Leadership: Third-largest diversified NBFC in India
- Stable Asset Quality: Low credit costs indicate effective risk management
Considerations
- Moderate grey market premium suggests cautious optimism
- NBFC sector faces regulatory and economic cyclicality
- Competition from established players like Bajaj Finance and Shriram Finance
Tata Capital vs Tata Technologies: Can History Repeat?
Investors are closely watching whether Tata Capital can replicate the success of Tata Technologies’ blockbuster debut in 2023. The comparison is natural given:
- Both are Tata Group companies
- Strong brand equity and governance
- Robust fundamentals and market positioning
However, each IPO operates in different sectors with distinct dynamics, making direct comparisons challenging.
Who Should Apply for Tata Capital IPO?
Ideal for:
- Long-term investors seeking exposure to India’s growing NBFC sector
- Investors confident in the Tata Group’s execution capabilities
- Those looking for diversified financial services exposure
- Risk-moderate investors comfortable with NBFC sector dynamics
May Consider Waiting:
- Investors seeking immediate listing gains (modest GMP)
- Those with low risk appetite during market volatility
- Short-term traders looking for quick flips
How to Apply for Tata Capital IPO
Investors can apply through:
- Online trading platforms (Zerodha, Groww, Upstox, etc.)
- Bank NetBanking ASIC facility
- Broker terminals
- Mobile trading apps
Remember to use your UPI ID for blocking funds during application.
Final Verdict: Tata Capital IPO Review
Tata Capital’s IPO presents a compelling opportunity for long-term investors seeking exposure to one of India’s leading NBFCs. The combination of strong financial performance, diversified business model, robust asset quality, and the trusted Tata brand creates a solid investment case.
The conservative pricing strategy and positive analyst recommendations suggest the management has balanced investor interests with market realities. While the modest grey market premium indicates measured expectations, the strong fundamentals and growth trajectory position the company well for sustained value creation.
For investors with a medium to long-term horizon, the Tata Capital IPO offers an opportunity to participate in India’s financial services growth story through a well-established, professionally managed institution.
