The highly anticipated Initial Public Offering (IPO) of Tata Capital Limited (TCL) opened for subscription on October 6, 2025, and will close on October 8, 2025. Shares will be listed on NSE and BSE, with trading expected to begin on October 13. As the flagship financial services department of the Tata Group, it has been able to generate significant market interest.
The Price Band
The price band of the new IPO has been set at Rs 310 to Rs 326 per share, with a lot size of 46 shares. This means retail investors need a minimum of Rs 14,260 to participate.
The IPO consists of a fresh issue of 21 crore shares and an offer for sale of 26.58 crore shares, bringing the total to 47.58 crore shares. Promoter Tata Sons is also offloading 23 crore shares, while the International Finance Corporation is selling 3.58 crore shares.
Funds raised from the fresh issue will be used to augment Tata Capital’s Tier-I capital, helping it meet future growth and lending requirements. In terms of scale, Tata Capital is the third-largest diversified NBFC in India, with gross loans of Rs 2,334 billion as of June 30, 2025. Its loan book has grown at a compound annual rate of 37.3% between March 2023 and March 2025, making it one of the fastest-growing large NBFCs.
The company’s asset quality remains robust, with a gross stage 3 loan ratio of 2.1% and a provision coverage ratio of 53.9%, which are among the best in the sector. Tata Capital has been able to serve over 7.3 million customers since it began lending in 2007, with nearly 88% of its loan portfolio focusing on retail and SME borrowers.
Should You Subscribe?
As per leading analysts, Tata Capital’s model spans across 1,516 branches, digital platforms, and partner tie-ups – underpinning its growth and customer reach. The brokerage points out that 80% of loans are secured and over 98% of accounts are small-ticket loans, which signals towards a lower concentration risk.
Analysis unveils that Tata Capital is valued at a price-to-earnings ratio of 32.3 times and a price-to-book of 3.5 times FY25 earnings, which translates into a post-issue market cap of nearly Rs 13.84 lakh crore.
Most analysts have rated the IPO with a ‘Subscribe’ rating since Tata has a strong growth record, governance pedigree, and risk management framework.
Grey market activity suggests that a premium of Rs 20 to Rs 24 over the issue price is expected, indicating potential listing gains of around 6–7%. With such changes, the stock might appeal to short-term investors. However, the bigger opportunity, as per the experts, lies in holding the stock for the long haul, as India’s credit demand continues to expand. Tata’s diversified lending portfolio and robust asset quality make it an attractive candidate for long-term portfolios. Users should not expect windfall returns.
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