🚀 Tata Capital IPO – What You Need to Know

IPO
,
1

Attention Investors — the highly anticipated Tata Capital IPO is now live! Here’s a snapshot of the key details and things to watch:

:pushpin: Key Details

Parameter Value
IPO Open 6 October 2025
IPO Close 8 October 2025
Listing Date 13 October 2025
Price Band ₹ 310 to ₹ 326 per share
Issue Size ~ ₹ 15,512 crore (Fresh issue + OFS)
Fresh Issue ~ ₹ 6,846 crore
Offer for Sale (OFS) ~ ₹ 8,666 crore
Lot Size 46 shares

:white_check_mark: Strengths & Potential Upsides

  • Backed by the Tata Group — the strong brand & legacy offer credibility and investor confidence.

  • The fresh capital will help augment Tier-1 capital, giving the company buffer to expand lending and absorb risk.

  • Tata Capital has a diversified lending portfolio (retail, SME, corporate), reducing concentration risk.

  • Strong anchor investor interest (e.g. LIC, global institutions) underlines institutional confidence.

:warning: Risks & Considerations

  • The pricing is aggressive (at the upper end, valuations could be demanding).

  • NBFCs are sensitive to interest rate cycles, credit risk, and macroeconomic slowdown.

  • OFS portion (from existing shareholders) could put pressure on supply.

  • The final listing performance may depend a lot on market sentiment.

:date: What to Do / Watch

  • If you plan to apply, do it between 6–8 October.

  • Monitor subscription status daily.

  • Check allotment on ~9 October, and listing is expected 13 October.

  • Keep an eye on grey market premium (GMP) for sentiment cues.

  • Compare with peer NBFCs like Bajaj Finance, HDB, etc., to gauge relative valuation.

5 Likes
2

Subscription Status (Day 3)

By the end of Day 2 (October 7), the IPO had been subscribed 0.75 times overall. Breakdown by category:

  • Qualified Institutional Buyers (QIBs): 0.86 times
  • Non-Institutional Investors (NIIs): 0.76 times
  • Retail Individual Investors (RIIs): 0.67 times
  • Employee Segment: 1.95 times
  • Grey Market Premium (GMP)

The GMP has declined to approximately 3%, indicating a cautious investor sentiment despite the strong backing of the Tata Group and the company’s diversified financial portfolio. This subdued GMP suggests that while the long-term prospects are favorable, short-term listing gains may be modest.

Key Dates

  • IPO Closes: October 8, 2025
  • Allotment Date: October 9, 2025
  • Refunds Initiated: October 10, 2025
  • Listing Date: October 13, 2025

While the IPO offers a strong long-term investment case, the current market sentiment and subdued GMP suggest that investors should temper expectations for immediate listing gains. Those with a long-term investment horizon may find value in Tata Capital’s diversified operations and the credibility of its Tata Group parentage

4 Likes
3

Financial Snapshot

  • FY2024 Revenue: ₹28,370 crore
  • FY2024 Net Profit: ₹3,655 crore
  • FY2025 Revenue Growth: 55.8% YoY
  • FY2025 Net Profit Growth: 16.3% YoY
  • Return on Equity (RoE): 12.6%
  • Net Non-Performing Assets (NNPA): 0.8%
  • Gross Stage 3 Loans: 2.1%
  • Provision Coverage Ratio: 54%

Valuation & Peer Comparison

  • Post-IPO Market Capitalization: Approximately ₹1.38 lakh crore
  • Price-to-Book (P/B) Ratio: 3.4–4.1x
  • Price-to-Earnings (P/E) Ratio: Around 32x
  • Peer Comparison: Valuation is higher than HDB Financial (P/B of 3.6x) but lower than Bajaj Finance (P/B of 5.2x)
4

Tata Capital’s IPO made its market debut recently, but traders are already seeing some volatility. The stock, priced at ₹326, opened with a slight premium, but within a day, it slipped below the issue price, down around 2% in intraday trade.

From a trader’s lens, this signals a cautious market reception. The lack of a significant listing gain, compared to other recent high-profile IPOs, suggests short-term profit booking and a wait-and-watch approach from investors. Peer valuations, market sentiment, and competing IPO hype (like LG Electronics) likely added pressure.

For active traders, this creates opportunities for tactical trades - short-term dips could be watched for quick rebounds, while risk-averse positions might wait for clear support levels to emerge around the ₹320–325 zone. Long-term investors might look past the initial wobble, focusing on Tata Capital’s fundamentals and growth potential, but the opening days are clearly showing that the market is pricing in caution.