Tata Capital makes stock market debut tomorrow: What to expect?
What's the story
The highly anticipated initial public offering (IPO) of Tata Capital, the flagship non-banking financial company (NBFC) of the Tata Group, will make its stock market debut tomorrow. The company's ₹15,512 crore IPO was subscribed 1.95 times during the bidding process. This was mainly due to strong institutional participation, with qualified institutional buyers (QIBs) oversubscribing their quota by 3.42 times, and non-institutional investors' (NIIs) portion being booked 1.98 times.
Investor behavior
Retail investors subscribed just 1.10 times
Retail investors were more cautious with their investments in Tata Capital's IPO, subscribing only 1.10 times. The issue price was set at ₹310-₹326 per share, which is a 56% discount to the unlisted market value of Tata Capital. The latest gray market premium (GMP) has dropped from ₹8 earlier this week to ₹0 as of Sunday morning, indicating that the listing could be flat.
Anchor investors
₹4,642cr raised from anchor investors ahead of IPO
Before its IPO, Tata Capital raised ₹4,642 crore from anchor investors. The Life Insurance Corporation of India (LIC) was the largest anchor investor, buying 2.15 crore shares worth nearly ₹700 crore. Other major domestic investors included ICICI Prudential, HDFC Mutual Fund, Aditya Birla Sun Life, DSP, Axis, and Kotak among others. Global investors such as Morgan Stanley, Goldman Sachs, Nomura, and Norway's Government Pension Fund Global also made significant allocations in the company ahead of its market debut tomorrow.
Company profile
Third-largest diversified NBFC in India
A wholly-owned subsidiary of Tata Sons, Tata Capital is India's third-largest diversified NBFC with total assets of ₹2.52 lakh crore, and a loan book worth ₹2.33 lakh crore as of June 2025. The company has an industry-low gross non-performing asset (NPA) ratio of 2.1%, backed by an 80% secured book and a wide network of branches across the country. Between FY23 and FY25, Tata Capital's revenue grew by 56% while its profit after tax increased by 10% to ₹3,655 crore.
Investment advice
Brokerages give rating to Tata Capital's IPO
Brokerages like Aditya Birla Money, Anand Rathi, and Canara Bank Securities have given a "Subscribe - Long Term" rating to Tata Capital's IPO. Antique Stock Broking said that "normalization of credit costs in the vehicle finance portfolio, along with realization of business synergies, would be key to achieving higher return ratios of around 15% RoEs—similar to peers like HDB Financial." ICICI Direct Research noted Tata Capital's assets under management (AUM) surged to ₹2.33 lakh crore in FY25, reflecting a 37.3% CAGR over FY23-25.