Tata Capital’s ₹15,512 crore initial public offering (IPO) was fully subscribed on its final day, October 8, 2025, reflecting strong investor interest despite some concerns about valuation and market volatility.
The IPO, priced between ₹310 and ₹326 per share, attracted bids for 33.48 crore shares, surpassing the 33.34 crore shares on offer. Qualified Institutional Buyers (QIBs) led the demand, with their portion subscribed 1.18 times, followed by Non-Institutional Investors (NIIs) at 1.10 times.
Retail investors subscribed 0.84 times their reserved portion, while employees oversubscribed their segment by over 2 times,
The IPO comprises a fresh issue of up to 210 million shares and an offer-for-sale by existing shareholders Tata Sons and the International Finance Corporation amounting to 265.8 million shares. Proceeds from the fresh issue will be used to augment Tata Capital’s capital base and for general corporate purposes
Despite the full subscription, the Grey Market Premium (GMP) remained subdued, indicating cautious investor sentiment. The GMP, a gauge of expected listing gains, was around ₹6 per share, suggesting a modest premium listing. Analysts attribute this muted response to factors such as concerns over asset quality following Tata Capital’s merger with Tata MotorFinance Ltd., which led to an increase in non-performing assets and a dip in return on equity.
Leading brokerages, including Anand Rathi and Canara Bank Securities, have maintained a ‘Subscribe for long-term’ rating on the IPO, citing Tata Capital’s diversified lending portfolio and strong risk management practices. However, some analysts have expressed caution due to the company’s recent financial performance and integration challenges post-merger.
The IPO is expected to list on the Bombay Stock Exchange and the National Stock Exchange on October 13, 2025. This marks a significant milestone for Tata Capital, a leading non-banking financial company in India, as it enters the public market.
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