Tata Capital’s much-anticipated Initial Public Offering (IPO) has opened for subscription today, aiming to raise ₹15,512 crore. This marks one of the largest public offerings by a non-banking financial company (NBFC) in India. The IPO will remain open until Wednesday, October 8, 2025.
IPO Details
- Price Band: ₹310 to ₹326 per share
- Lot Size: 46 shares (minimum investment of ₹14,996 at the upper end)
- Issue Type: Combination of fresh issue and offer for sale (OFS)
- Total Shares on Offer: Up to 47.58 crore shares
- Fresh Issue: 21 crore shares (₹6,846 crore)
- OFS: 26.58 crore shares (₹8,666 crore)
- Fresh Issue: 21 crore shares (₹6,846 crore)
- Promoter Selling Shares: Tata Sons (23 crore shares), International Finance Corporation (3.58 crore shares)
- Listing: Expected on October 13, 2025, on both BSE and NSE
Early Investor Interest
Within the first hour of bidding, the IPO was subscribed 15%, indicating strong early interest. Ahead of the opening, the grey market premium (GMP) remained modest at around 3% over the issue price, suggesting balanced investor sentiment.
Financial Performance and Growth Prospects
Tata Capital has demonstrated steady growth in its loan book, which stood at ₹2.3 lakh crore as of June 30, 2025. The company plans to increase its portfolio of unsecured retail loans from 12% to 15%, depending on portfolio quality. This includes personal, education, microfinance, and SME loans. The company is also focusing on expanding its housing loan segment, which currently comprises one-third of its total loan book.
Risks and Considerations
Investing in the Tata Capital IPO carries certain risks typical of the financial sector:
- Credit Risk: Defaults by borrowers can affect profitability and capital adequacy.
- Regulatory Risk: Compliance with NBFC regulations is critical, and changes in rules can impact operations.
- Market Volatility: Stock prices may fluctuate post-listing, influenced by broader market sentiment.
- Interest Rate Risk: Changes in interest rates affect lending margins and loan demand.
Investors should weigh these factors alongside potential growth opportunities before applying.
Should You Apply?
Investors should consider the following factors before applying:
- Valuation: The price band of ₹310–₹326 per share places the company’s valuation between ₹1.32 lakh crore and ₹1.38 lakh crore. This is lower than the company’s shares traded in the unlisted market, which may indicate value for retail investors.
- Financial Health: Tata Capital has shown consistent growth in its loan book and plans to expand its unsecured retail loan portfolio. The company’s focus on housing loans and cautious approach towards education loans reflect a balanced growth strategy.
- Market Conditions: The IPO opens amid a busy week for the Indian primary market, with multiple IPOs scheduled. Investors should consider the overall market sentiment and their individual risk appetite before investing.
Industry Context
Tata Capital operates in the NBFC sector, which has witnessed significant developments over the past decade. While NBFCs offer flexible lending solutions compared to banks, they are sensitive to economic cycles, interest rate changes, and regulatory policies. The company competes with other NBFCs, banks, and fintech players, making market positioning and product differentiation crucial for long-term performance.
Conclusion
Tata Capital’s ₹15,512 crore IPO presents an opportunity for investors to participate in one of India’s leading NBFCs. With a strong financial track record, strategic growth plans, and an attractive valuation, the IPO may appeal to long-term investors seeking exposure to the financial services sector. However, potential investors should conduct thorough due diligence and consider their investment objectives before applying.
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