Tata Capital Limited made a steady debut on the stock exchanges today, listing at Rs 330 per share on NSE, a 1.23% premium over the issue price of Rs 326. The Tata Group-owned NBFC’s IPO had seen a healthy subscription of 1.95 times, with QIBs bidding 3.42 times, NIIs 1.98 times, and retail investors 1.10 times.
The Rs 15,511.87 crore IPO included a fresh issue of Rs 6,846 crore and an offer-for-sale (OFS) component worth Rs 8,665.87 crore. The issue opened on October 6 and closed on October 8, with the allotment finalised on October 9. Shares were listed today, October 13, on both the BSE and NSE.
Brokerages have maintained a positive but measured outlook on Tata Capital post-listing.
- Emkay Global has initiated coverage with an ‘Add’ rating and a target price of Rs 360, implying a 10% upside from the issue price of Rs 326. The brokerage highlighted Tata Group’s strong parentage, diversified lending portfolio, and steady growth in vehicle finance and secured loans as key positives.
- JM Financial also initiated coverage with an ‘Add’ rating and target price of Rs 360, valuing Tata Capital at 2.9x FY27E P/B. The brokerage titled its note “Well Established Diversified Franchise; Valuation Upside Limited” and expects AUM growth at 20% CAGR and PAT growth at 34% CAGR over FY25–27E, translating into RoA/RoE of 1.9%/13.2% for FY26–FY27.
The firm’s strong parentage, diversified business model, and operational efficiency remain key strengths. However, analysts also noted that valuation comfort is limited at current levels, given near-term moderation in margins and credit costs.
Verdict:
With Tata Capital’s fundamentals firmly backed by the Tata Group and visible growth in its lending book, most brokerages suggest a ‘hold’ or moderate ‘add’ stance, waiting for more clarity on near-term financial performance before making fresh entries.
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