Tata Capital Limited’s much-awaited initial public offering (IPO), the largest in India’s history, opened for subscription on Monday, October 6, and received a 17% subscription in the first hour of bidding, as per early data from stock exchanges.
The ₹15,511 crore public issue surpasses HDB Financial’s ₹12,500 crore IPO to become the biggest of 2025. The offering comprises a fresh issue worth ₹6,846 crore and an offer for sale (OFS) of ₹8,665 crore by promoters Tata Sons and International Finance Corporation (IFC).
Subscription details and anchor round
Retail investors can apply for a minimum of one lot of 46 shares, amounting to ₹14,996, and bid in multiples of 46 thereafter. Of the total issue size, 35% is reserved for retail investors, 50% for qualified institutional buyers (QIBs), and 15% for non-institutional investors.
Before the IPO opened, Tata Capital raised ₹4,642 crore from 68 anchor investors, including marquee names such as Life Insurance Corporation of India (LIC), Goldman Sachs, Nomura, and Morgan Stanley.
Analysts’ views
Most brokerages have recommended subscribing to the Tata Capital IPO for long-term investors, citing its strong brand, diversified portfolio, and solid credit profile.
Aditya Birla Capital assigned a “subscribe for long term” rating, stating that Tata Capital benefits from the strong Tata brand and robust domestic and international credit ratings, ensuring a low cost of funds. However, it warned of key risks such as rising delinquencies, high unsecured loan exposure, and potential asset-liability mismatches.
Anand Rathi echoed the sentiment, also giving a “subscribe for long term” call. The brokerage highlighted Tata Capital’s diversified loan portfolio and increased share of secured lending, minimizing concentration risks.
Canara Bank Securities rated the issue “subscribe”, noting that Tata Capital has been profitable since 2007 and has demonstrated resilience post-pandemic. It added that the company is well-positioned to tap India’s expanding retail and SME lending markets.
LKP Securities maintained a “subscribe” recommendation, citing the company’s strong governance, diversified liabilities, and consistent profitability.
However, Deven Choksey Research offered a “neutral” rating, observing that while Tata Capital’s growth outlook is healthy, its current valuation is “fully priced” relative to peers, and its return profile remains slightly lower than other listed NBFCs.
Grey Market Premium dips
In the unlisted market, Tata Capital’s grey market premium (GMP) has moderated to around ₹7.5 per share, down from the earlier range of ₹15–₹18. Analysts cautioned that GMP levels are purely speculative and do not always reflect the actual listing price.
Outlook
As India’s largest NBFC IPO, Tata Capital’s issue is being closely watched by investors and market participants. With a strong anchor book, diversified portfolio, and credible management, analysts expect steady participation through the subscription window despite the initial dip in GMP.
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