Live Update: Tata Capital IPO enters Day 2 of bidding
The Tata Capital IPO opened on October 6 and is now in its second day of public subscription. With a fresh issue and an Offer for Sale (OFS), the financial services arm of the Tata Group aims to raise about Rs 15,512 crore, making it one of the year’s biggest IPOs. The issue is open until October 8, and investors are watching the grey market activity and primary-market demand as they decide whether to participate.
Why Tata Capital IPO is significant in 2025
At Rs 15,511.87 crore, Tata Capital’s IPO is the largest in 2025 and would be the biggest since Hyundai Motor India’s Rs 27,859 crore issue last year. The blend of a fresh issue and an OFS offers liquidity for existing shareholders while enabling new public ownership in a prominent Tata Group financial services entity.
Offer structure and pricing
The issue has a price band of Rs 310–326 per share, with the offer earmarked for both retail and institutional investors. The dual structure—new shares along with an OFS—aims to broaden participation while ensuring sufficient capital for growth and regulatory compliance.
Key takeaway for bidders: understand the final price within the band, and be mindful of allocation dynamics that often favor anchor participants and institutions in large issues.
Anchor investors build early confidence
Even before the public launch, Tata Capital secured about Rs 4,642 crore from 135 anchor investors on October 3. The involvement of anchor investors, led by Life Insurance Corporation of India (LIC), signals strong long-term interest and can positively influence secondary-market sentiment post-listing.
Grey market premium (GMP) and what it means
As of Day 2, Tata Capital IPO shares are trading in the grey market with a premium of around Rs 12.5, roughly 4% over the upper price band. It’s essential to note that GMP is an unofficial gauge of demand and is not the listing price. GMP reflects market sentiment and can swing with broader market conditions, regulatory news, and issuer-specific updates.
Investors should treat GMP as an indicator rather than a guaranteed return. Listing day performance may diverge from GMP expectations, so it’s wise to focus on the formal price band, basis of allotment, and long-term fundamentals of Tata Capital at listing and beyond.
What investors should consider before bidding
- Evaluate Tata Capital’s use of funds: the mix of fresh capital for growth vs. OFS liquidity for existing shareholders.
- Assess the valuation: compare the Rs 310–326 price band with peers in the fintech and financial services space, considering growth plans and profitability trajectory.
- Look at the anchor and implied demand: robust anchor participation can be a positive signal, but it’s not a guarantee of post-listing gains.
- Understand the listing logistics: the IPO will be listed on both BSE and NSE, so check your preferred broker’s bidding process and timing for ASBA or UPI-based applications.
- Be mindful of risk and temperament: invest in line with your risk tolerance and use a disciplined approach to allocations and price realization.
What’s next for Tata Capital IPO
With Day 2 underway and demand dynamics evolving, investors should stay tuned to official updates on subscription status as well as GMP fluctuations. The final subscription mix will influence anchor retention, potential retail demand, and the eventual listing performance.
Bottom line for bidders
Tata Capital’s IPO marks a landmark moment for 2025 capital markets, combining a substantial capital raise with broad market participation. While GMP offers a glimpse into near-term sentiment, the official listing price and long-term fundamentals will determine the true value proposition for investors. If you’re considering bidding, align your decision with your investment horizon and risk tolerance, and monitor day-to-day updates as bidding progresses toward October 8.
