Tata Capital Limited (TCL)'s highly anticipated initial public offering (IPO) began subscriptions on October 6, 2025 and will end on October 8, 2025.

Shares will be listed on the NSE and BSE, and trading is expected to begin on October 13. As the Tata Group's flagship financial services arm, the issue has sparked widespread market interest.

The price range has been set between Rs 310 and Rs 326 per share, with a lot size of 46 shares. This means that retail investors must pay at least Rs 14,260 to participate.

Key Highlights

• Tata Capital's IPO opens today with a price band of ₹310–₹326.
• The issue size is ₹15,512 crore, India's largest NBFC IPO.
• Retail investors can bid for a minimum of 46 shares.

KEY IPO DETAILS

The IPO consists of a fresh issue of 21 crore shares and an offer for sale of 26.58 crore shares, for a total of 47.58 crore shares. Promoter Tata Sons is selling 23 crore shares, while International Finance Corporation is selling 3.58 crore.

The proceeds from the new issue will be used to supplement Tata Capital's Tier-I capital, allowing it to meet future growth and lending requirements.

Tata Capital is the third-largest diversified NBFC in India, with gross loans totaling Rs 2,334 billion as of June 30, 2025. Its loan book increased 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 strong, with a gross Stage 3 loan ratio of 2.1% and a provision coverage ratio of 53.9%, both among the best in the industry. Tata Capital has served over 7.3 million customers since it began lending in 2007, with retail and SME borrowers accounting for nearly 88% of its loan portfolio.

SUBSCRIBE OR SKIP?

According to Anand Rathi analysts, Tata Capital's growth and customer reach are underpinned by its omni-channel model, which includes 1,516 branches, digital platforms, and partner tie-ups. The brokerage notes that 80% of loans are secured, and over 98% of accounts are small-ticket loans, reducing concentration risk.

At the same time, Tata Capital is using analytics and digital tools to improve underwriting and lower credit costs.

Regarding valuation, Anand Rathi emphasizes that the IPO is fully priced. Tata Capital is valued at the upper end of the range, with a price-to-earnings ratio of 32.3 times and a price-to-book of 3.5 times FY25 earnings, resulting in a post-issue market capitalization of nearly Rs 13.84 lakh crore.

Despite the high valuation, the brokerage recommends a "Subscribe Long Term" rating, citing the company's strong growth track record, governance credentials, and risk management framework.

Also Read: Tata Capital Prepares for Rs 174.53 Bn IPO Ahead of RBI Deadline

THE LATEST GMP

Meanwhile, grey market activity suggests a premium of Rs 20 to Rs 24 over the issue price, indicating potential listing gains of approximately 6-7%.

While this may appeal to short-term investors, experts believe the better opportunity lies in holding the stock for the long term, as India's credit demand continues to grow.

For retail applicants, the decision boils down to risk tolerance.

The Tata brand, diverse lending portfolio, and strong asset quality make it an appealing choice for long-term portfolios. However, given the full pricing, those expecting immediate windfall returns should temper their expectations.