Tata Capital Limited, the flagship financial services arm of the trusted Tata Group, opened its colossal Initial Public Offering (IPO) for subscription today, October 6, 2025. This is one of the biggest IPOs of the year, and it’s a massive moment for the Non-Banking Financial Company (NBFC) sector. Here’s everything you need to know before you decide to invest.
Key IPO Details and Dates
The Tata Capital IPO aims to raise a huge ₹15,511.87 crore, making it one of the largest NBFC listings in India’s market history.
- Price Band: ₹310 to ₹326 per equity share.
- Issue Period: Monday, October 6, 2025, to Wednesday, October 8, 2025.
- Total Issue Size: ₹15,511.87 crore.
- This is a mix of a Fresh Issue of shares worth ₹6,846 crore and an Offer for Sale (OFS) of ₹8,665.87 crore by existing shareholders, including Tata Sons and International Finance Corporation (IFC).
- Minimum Investment (Retail): ₹14,996 for a lot of 46 shares (at the upper price band).
- Tentative Listing Date: Monday, October 13, 2025, on both the BSE and NSE.
The proceeds from the Fresh Issue (₹6,846 crore) are primarily earmarked to augment the company’s Tier-I capital base. This essentially means boosting its capital adequacy ratio to provide a larger safety cushion against loan losses and support future lending growth, which is crucial for an NBFC in a fast-growing market.
The Company and Its Financial Health
Tata Capital is the third-largest diversified NBFC in India, boasting a gross loan book of over ₹2.3 lakh crore as of June 2025. It serves over 7.3 million customers across more than 25 products, focusing heavily on retail and SME lending (about 87.5% of the book).
The company has shown robust growth, with total revenue from operations climbing to ₹28,370 crore in FY25, reflecting a fast growth (CAGR) of about 44% from FY23. This impressive top-line growth translated to a strong Net Profit of ₹3,655 crore in the last fiscal year (FY25). Its financial strength is underpinned by the Tata brand and an AAA-rated credit profile, which helps keep its borrowing costs low. Asset quality is strong, with Gross Stage 3 Loan ratio at 2.1% as of June 2025.
Brokerage Reviews and GMP Check
Most major brokerages are bullish on the issue, giving it a ‘Subscribe-Long Term’ rating. They cite the company’s strong parentage, diversified portfolio, robust growth, and prudent risk management as key positives. Although its valuation at a P/B of 3.4x (post-issue) is comparable to peers like Bajaj Finance, analysts believe the brand premium and growth prospects justify the pricing.
The Grey Market Premium (GMP), an unofficial indicator of market sentiment, has been volatile but shows modest potential listing gains. As of writing this article, the GMP is trending at a premium of around ₹7.5 which has reduced from a high of around ₹30 which translates to an estimated listing gain of about 2%. Investors should remember that GMP is purely speculative.
In short, the Tata Capital IPO offers a chance to invest in a major financial powerhouse backed by the unmatched trust of the Tata Group. It’s positioned as a steady, long-term wealth creator in the resilient Indian financial market.
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