Tata Capital’s IPO, one of India’s most eagerly awaited IPOs of 2025, opened for subscription yesterday on October 6 and will be open through October 8, 2025. The expected date for listing is on October 13, 2025. The diversified NBFC of the Tata Group looks to target India’s rising credit penetration and robust demand for consumer and business financing, while offering investors a chance to own a stake in a financial giant.
IPO Structure and Key Details
Tata Capital’s IPO is a huge ₹15,511.87 crore issue, making it the largest Indian IPO of 2025 so far. The offer includes a fresh issue of ₹6,846 crore and an offer for sale (OFS) of ₹8,665.87 crore by Tata Sons and International Finance Corporation. The price band is set at ₹310 to ₹326 per share. The minimum lot size is 46 shares, requiring a minimum investment of approximately ₹14,996 at the upper band. The IPO structure is designed to maintain strong Tata Group holding post-issue, while allowing for wider institutional and retail participation. Allotment will be decided on October 9, with shares listed on BSE and NSE.
Grey Market Premium (GMP): Latest Trends
The grey market premium (GMP) for Tata Capital’s IPO has been relatively mild. As of Day 2, GMP stands at ₹8–₹12 per share, about a 2–4% premium over the upper price band. This suggests listing price expectations in the range of ₹334–₹338, indicating modest but positive sentiment. Experts attribute the limited GMP to fair IPO pricing and near-term profitability concerns after the Tata Motors Finance merger, which increased net NPA levels but is viewed as a manageable long-term risk.
Business Strengths and Financials
Tata Capital is India’s third-largest diversified NBFC, having assets of ₹2.52 lakh crore and gross loans of ₹2.33 lakh crore as of June 2025. The company’s PAT (Profit After Tax) rose to ₹3,655 crore in FY25 (from ₹3,327 crore in FY24), and revenue grew up to ₹28,313 crore. Tata Capital remains well-capitalised, with a diversified portfolio across retail, SME, and corporate segments, and a strong risk management framework despite NPA challenges post-merger.
Expert View: Should You Apply?
Brokerage houses in general recommend a long-term ‘Subscribe’ rating. The IPO is attractively priced at 3.2–3.4x post-issue book value, which compares favourably with listed peers. Analysts note Tata Capital’s strong group franchise, proven management, and brand backing create solid potential for value creation as India’s credit market expands. However, investors should weigh moderate initial listing gains, mute GMP, and near-term integration risks from the merger with Tata Motors Finance. The hint is positive for those with a long-term horizon.
Nutshell
The Tata Capital IPO stands out for its scale, institutional backing, and robust business model, with modest listing gains expected but stronger prospects for long-term growth. Subscribing may suit investors looking for steady exposure to a trustworthy NBFC giant riding on India’s secular financial growth story.
