Source: Times Now

The much-awaited IPO of Tata Capital Limited (TCL) opened for subscription beginning October 6 and is scheduled to close on October 8. The shares will likely be listed on the NSE and the BSE on October 13. The IPO has elicited excitement from investors of all types.

Key Information of Tata Capital IPO

  • Price Range: ₹310 – ₹326 per share
  • Lot Size: 46 shares (minimum investment of ₹14,260 for retail investors)
  • Total Size of Issue: 47.58 crore shares
  • Fresh Issue: 21 crore shares
  • Offer for Sale (OFS): 26.58 crore shares

Key Sellers: Tata Sons (23 crore shares) and the International Finance Corporation (3.58 crore shares)

Reason: Proceeds from the fresh issue will be used to augment Tata Capital’s Tier-I capital to facilitate growth in its lending business.

This ₹15,500 crore issue will be among the largest IPOs of the year 2025 and record the largest IPO by a non-banking finance company (NBFC) in India.

Tata Capital: A Financial Giant in the Making

Tata Capital is the financial services arm of the Tata Group and India’s third-largest NBFC, with gross loans of ₹2.33 lakh crore as of June 30, 2025.

From March 2023 to March 2025, its loan book expanded at a healthy 37.3% rate per annum, higher than that of most competitors. Moreover, Tata Capital has ensured good asset quality, refusing to compromise in terms of a gross Stage 3 loan ratio of 2.1% and a provision coverage ratio of 53.9%.

The company commenced activity in 2007 and has so far served 7.3 million customers. 

Around 88% of the bank’s loans are in the retail and SME segments, and it has a presence of 1,516 branches, digital channels, and partner networks in India.

What Analysts are Saying

Industry analysts believe that Tata Capital is a good investment choice for the long term. According to Anand Rathi Research, Tata Capital’s branch network, along with digital tools and data analytics, has aided rapid growth. At least 80% of its loans are secured, and its loan sizes are small, which mitigates risk.

With a maximum price band of ₹326, Tata Capital is valued at 32.3 times FY25 earnings and 3.5 times book value, providing Tata with a market value of around ₹1.38 lakh crore.

“While valuations are on the higher side, Tata Capital’s strong parentage, governance pedigree, and consistent performance make it a solid long-term play,” Anand Rathi said in its report, assigning a ‘Subscribe – Long Term’ rating.

Grey Market Premium (GMP)

Shares of Tata Capital are trading at a grey market premium of ₹20–₹24, indicating possible listing gains of around 6–7%.

Nevertheless, industry experts believe the larger benefit could be realised by staying invested in the stock long-term as India continues to experience strong demand for credit and Tata Capital’s strength in the market.

Is Investment Appropriate?

For retail investors, the decision is based on your objectives:

Those who are seeking long-term growth can look to invest in Tata Capital, a stable business model, and a propensity to trust brands.

Those anticipating quick listing gains should take heed, as the issue is fully priced, and the grey market premium suggests limited upside in the short term.

Overall, the Tata Capital IPO is a solid business proposition and steady upward growth potential, making it a reasonable long-term investment for patient holders.