Overview of Tata Capital IPO Day 1
The Tata Capital IPO opened with strong initial demand as the issue was 39% subscribed on day one. The retail portion saw 35% bids, non-institutional investors (NII) 29%, and qualified institutional buyers (QIBs) at 52% bids. The employee portion was modest, booked at 1.10x. By 5:00 PM, bids totaled 12,86,33,112 shares against 33,34,36,996 shares on offer at the close of day one, signaling growing investor interest ahead of the public listing.
Company Profile and Market Position
Tata Capital stands as a leading diversified NBFC in India with gross loans of ₹2,334 billion as of June 30, 2025, making it one of the sector’s largest players. The lender offers an expansive product suite—over 25 loan products targeted at salaried professionals, entrepreneurs, SMEs, and corporate clients—with loan sizes ranging from ₹10,000 to over ₹1 billion. The breadth of offerings supports broad customer reach and cross-sell opportunities across consumer, commercial, and wealth segments.
Recent Merger and Scale
In May 2025, the NCLT approved the merger of TMFL with Tata Capital, effective April 1, 2024. Post-merger, Tata Capital issued 183.9 million equity shares to TMF Holdings Limited. The integration enhances Tata Capital’s auto-financing capabilities, consolidating CVs, passenger cars, and supply chain finance. By March 2025, TMFL contributed a meaningful share of the auto-finance portfolio: 92.5% of commercial vehicle loans, 16.8% of car loans, and 12.8% of supply chain finance. This merger broadens product reach, geographies, and capital strength for a unified auto-finance platform.
Valuation and Analyst Views
At the upper price band of Rs 326, Tata Capital’s implied market capitalization stands around Rs 1.38 lakh crore. Analysts have highlighted a price-to-earnings (P/E) multiple of about 32.3x on FY25 earnings and a price-to-book (P/B) around 3.5x, which sits near the peer group but with potential for upside given the company’s growth trajectory and diversified funding base. Some research houses view the issue as reasonably priced, advocating a long-term subscribe stance supported by Tata Capital’ s scalable NBFC model and the broader credit penetration in India.
Anchor Booking and Market Pulse
The anchor book, closed ahead of the public issue, raised ₹4,642 crore from 68 institutional investors at ₹326 per share. High-quality anchors, including LIC and multiple mutual funds, reflected strong investor confidence and a constructive signal for the public tranche. In the grey market, the latest GMP around ₹7.5–₹7.50 indicates some premium over the issue price, implying a cautiously positive near-term listing to consider, albeit with typical volatility around first-day trading.
Should You Apply?
Investors weighing the Tata Capital IPO should consider their risk tolerance and investment horizon. The IPO shows robust demand across segments and a strong corporate backing, with a diversified product calendar and a strategic merger that expands auto-financing capabilities. If you seek long-term exposure to India’s growing NBFC landscape, Tata Capital could be a credible proxy to tap that growth. However, given the upper-range valuation and near-term market dynamics, a measured approach—assessing your portfolio fit, risk appetite, and entry price—remains prudent.
Key Takeaways for Investors
- Day 1 subscription stood at 39%, with strong QIB demand (52%).
- The merger with TMFL strengthens Tata Capital’s auto-finance capabilities and scale.
- Upper-band valuations imply a reasonable long-term case, though near-term listing gains may be modest as GMP trends evolve.
- Anchor investors assigned ₹4,642 crore signal confidence from institutions.
What’s Next
Basis of allotment is anticipated around Thursday, October 9, with refunds starting Friday, October 10 and demat credit on the same day for allotted shares. Listing is projected for Monday, October 13 on BSE and NSE, subject to market conditions. Investors should stay updated with the exchange notices and monitor GMP movements as the listing date approaches.
