Tata Capital IPO Day 1: Tata Capital’s much-awaited Rs 15,512 crore IPO, one of the biggest public offerings of 2025, opened for subscription on Monday, October 6 and will close on Wednesday, October 8. The price band has been set at Rs 310–Rs 326 per share, with a lot size of 46 shares (minimum investment of Rs 14,996 at the upper end). 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, ET reported.The issue includes a fresh issue of Rs 6,846 crore and an offer for sale (OFS) worth Rs 8,666 crore by promoter Tata Sons, which currently owns 95.6% of the NBFC.The IPO will comprise up to 47.58 crore shares, including a fresh issue of 21 crore shares and an offer-for-sale (OFS) of 26.58 crore shares resulting in an 11% dilution. Tata Sons, the promoter, will sell up to 23 crore shares, while International Finance Corporation will offload up to 3.58 crore shares.Of the total shares on offer, 21 crore will be newly issued by Tata Capital under the fresh issue. The capital raised from this component will flow directly to the company to support corporate purposes, including augmenting its Tier-I capital base.The remaining 26.58 crore shares will be offered through the OFS, with proceeds going to the selling shareholders—primarily Tata Sons and IFC—rather than to the company.The IPO will list on both BSE and NSE, with the likely allotment date on October 9 and listing on October 13.
Should you apply for the Rs 15,512 crore offer?
Anand Rathi Share & Stock Brokers has given the IPO a ‘Subscribe’ rating, highlighting strong loan-book growth, stable margins, and low credit costs. The brokerage told ET that the issue is attractively priced compared to peers and expects a healthy market debut with solid long-term growth potential.Prashanth Tapse, Senior VP at Mehta Equities, noted that the pricing leaves adequate headroom for long-term investors. “Considering market sentiment, Tata Capital’s management has sensibly priced the IPO slightly below the industry average, leaving decent headroom for a healthy listing pop,” Tapse told the outlet.Tata Capital has shown strong financial performance, with FY25 profit after tax rising to Rs 3,655 crore from Rs 3,327 crore in FY24 and revenue climbing to Rs 28,313 crore from Rs 18,175 crore a year earlier.As of June 2025, Tata Capital had total assets of Rs 2.52 lakh crore and gross loans of Rs 2.33 lakh crore, making it the third-largest diversified NBFC in India, after Bajaj Finance and Shriram Finance.With its strong balance sheet, diversified loan portfolio, and brand trust, Tata Capital’s IPO is being closely watched to see if it can replicate the success of Tata Technologies’ blockbuster debut last year.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
