This week, the Indian stock market experienced two large-scale IPOs — Anantam Highways Trust and Tata Capital. Anantam Highways Trust’s first day response was subdued, while Tata Capital’s huge IPO pulled in strong.
Anantam Highways Trust IPO: 14% Subscription on Day 1
The Anantam Highways Trust IPO, an infrastructure investment trust (InvIT) focused on road construction projects in India, opened for subscription on Tuesday, October 7, 2025, with an issue price between ₹98 and ₹100 per unit. It aims to raise up to ₹400 crore. The offer will close on Thursday, October 9.
About ₹376 crore of the proceeds from the IPO will be deployed as loans to its project Special Purpose Vehicles (SPVs) to repay existing loans, while the remainder will be utilized for general corporate purposes. The Trust is sponsored by Alpha Alternatives Fund Advisors.
Anantam Highways Trust raised almost ₹180 crore from anchor investors on October 6, before opening to the public. Anchor investors received allotments of around 1.79 crore units at ₹100 each, spread across 11 investors. The largest anchor investment included ₹30 crore from WhiteOak Capital Mutual Fund, with Minerva Ventures Fund and Trust Investment Advisors investing approximately ₹25 crore each. Other anchor investors were SBI Capital Markets, Edelweiss Life Insurance, and Reliance General Insurance, among others.
Of the total offering, no more than 75% of the issuance is to be reserved for institutional investors, while no less than 25% is reserved for non-institutional investors. Applications can be made for a minimum.
As reported on Chittorgarh.com, at 1:02 PM IST on October 7, the subscription level for the IPO was 14%. The Non-Institutional Investor (NII) and Qualified Institutional Buyer (QIB) portions were subscribed at a level of 12% each. A total of 32.31 lakh units were bid, against an offer of 2.24 crore units.
According to Investorgain.com, the grey market premium (GMP) for the IPO is ₹0, suggesting a ₹0 change, with the units trading at their issue price. This indicates that investor sentiment is neutral at this.
Tata Capital IPO: Pressure on Margins but a Robust Long-Term Outlook
The ₹15,500-crore IPO of Tata Capital is among the largest since the listing of Hyundai Motor India in 2024, and entered its second day of bidding on Tuesday. On the first day of bidding, the issue was subscribed 0.39 times, aided by robust institutional demand.
According to analysts, Tata Capital is under margin pressure due to higher funding costs and lower provisioning buffers. As a result, profits may remain under pressure for the time being. However, analysts believe the IPO offers long-term potential based on the strong brand equity of the Tata Group.
Impact on profitability due to the TMFL merger:
Tata Capital’s recent acquisition of Tata Motors Finance Ltd (TMFL) means Tata Capital has expanded its vehicle financing business, but it has also added more expensive liabilities and lower-quality assets. As a result, Tata Capital could expect higher provisions and lower profitability.
SBI Securities said that Tata Capital’s return on equity (ROE) and return on assets (ROA) fell during FY25 and Q1 FY26 due to losses at TMFL but are expected to return to good levels once TMFL makes a profit and integration synergies are seen to improve profitability.
Market Overview
Despite the lackluster grey market premium for Anantam Highways Trust in its initial outing, the focus still turned to Tata Capital
Experts suggest that Anantam Highways Trust is likely to receive more bids in the next 48 hours, particularly from institutional investors. In comparison, Tata Capital is considered a long-term growth story, supported by the education of the Tata Group’s strong brand and the wide variety of financial services it has.
Both IPOs represent the different aspects of the marketplace, with Anantam Highways Trust being the growth side focused on infrastructure, while Tata Capital
