Tata Capital IPO Day 1: What the numbers say
The Tata Capital IPO opened with strong investor interest, recording a 39% subscription on Day 1. Breakdown figures show the retail portion at 35%, non-institutional investors (NII) at 29%, and qualified institutional buyers (QIBs) at 52%. The employee portion stood at 1.10x bids, signaling steady demand from internal stakeholders. By 5:00 PM, bids for 12,86,33,112 shares had come in against a total of 33,34,36,996 shares on offer at the end of the first trading day, according to BSE data.
Context: Tata Capital’s business and merger momentum
Tata Capital, with gross loans of ₹2,334 billion as of June 30, 2025, positions itself as the third-largest diversified NBFC in India. The company emphasizes its broad product suite—over 25 loan products targeting salaried professionals, entrepreneurs, SMEs, and corporates. Loan sizes span from ₹10,000 to surpassing ₹1 billion, enabling access across multiple customer segments.
The merger with TMFL, approved by the NCLT in May 2025 and effective from April 1, 2024, has expanded Tata Capital’ s auto-financing footprint. Post-integration up to March 2025, a substantial share of commercial vehicle loans (92.5%), car loans (16.8%), and supply chain finance (12.8%) originated from TMFL. This consolidation broadens the product spectrum, geographic reach, and capital base, creating a unified platform in the auto-financing ecosystem.
Valuation signals and broker perspectives
At the upper end of the ₹326 price band, Tata Capital’s market cap is pegged at around ₹1,38,383 crore. Analysts point to a price-to-earnings (P/E) multiple of about 32.3x on FY25 earnings and a price-to-book (P/B) of around 3.5x post-IPO, which compares favorably with some peers in the Indian NBFC space for long-term value. Several brokers note that the IPO appears reasonably priced, supporting potential listing gains and sustainable upside for investors who seek liquidity and growth exposure in the NBFC cycle.
Independent research quotes a mixed but constructive sentiment. Some analysts, such as Mehta Equities Ltd., advocate subscribing for the long term given the rising credit penetration, formalisation of the economy, and the broad financing demand. Anand Rathi Research suggests a “Subscribe Long Term” rating, reinforcing the case for Tata Capital as a scalable proxy to participate in NBFC growth. Critics, however, caution that pricing is not cheap, and investors should weigh risks related to cyclicality and credit quality in a high-rate environment.
Anchor book and listing timeline
Tata Capital successfully raised ₹4,642 crore from 68 anchor investors, with subscription nearly five times the allocated amount. Notable participants included LIC, ICICI Prudential Mutual Fund, Nippon India Mutual Fund, and international players like Nomura and Morgan Stanley. The anchor allocation comprised 14.24 crore shares at ₹326 per share, reflecting strong confidence ahead of the public issue.
GMP (grey market premium) stood at ₹7.5 today, placing the implied listing price around ₹333.5, roughly 2.3% higher than the issue price of ₹326. However, market chatter indicates the GMP has cooled from earlier highs, suggesting some cooling of demand ahead of listing. Projections point to final basis of allotment around October 9, with refunds on October 10 and listing likely on October 13, subject to market conditions.
Should you subscribe? Investor takeaway
With a diversified product portfolio, a robust Tata Group link, and a sizable auto-financing presence post-merger, Tata Capital presents a credible growth narrative for long-horizon investors. The IPO valuation sits in a mid-to-high range relative to peers, offering potential upside if credit demand remains resilient and earnings scale in line with expectations. Investors should consider personal risk appetite, time horizon, and financial goals before subscribing. For those seeking exposure to the NBFC cycle and Tata Group synergies, Tata Capital can be a compelling addition to a well-balanced portfolio.
Key data at a glance
- IPO size: ₹15,512 crore (approx.)
- Day 1 subscription: 39%
- Retail: 35%, NII: 29%, QIBs: 52%, Employees: 1.10x
- Anchor book: ₹4,642 crore raised; 14.24 crore shares
- Grey market premium: ₹7.5; implied listing price ~₹333.5
