The race for Tata Capital shares ends today. But the enthusiasm so far feels more like a slow jog than a sprint — with only 75% of the issue taken up by Day 2 and a waning grey market premium, investors seem to be hitting the brakes.
Tata Capital’s blockbuster IPO—India’s largest this year at ₹15,511.87 crore—is set to close its subscription window on October 8, 2025.
As of Day 2 (October 7), it had attracted bids for 24.96 crore shares against 33.34 crore on offer — translating to just 0.75× overall subscription.
Subscription times:
- QIBs: 0.86×
- NIIs: ~0.76×
- Retail investors: ~0.67×
- Employee portion: ~1.95×
The IPO’s price band is set between ₹310 – ₹326 per share, with a minimum lot size of 46 shares (i.e. minimum investment of ~₹14,996 at the upper band). Regarding pricing confidence, anchor investors have already committed ₹4,641.82 crore, with LIC being the largest participant. On the grey market front, the premium (GMP) has steadily cooled. Early in the IPO, it hovered around ₹12.50; by Day 3 (today) it’s down to about ₹5–6, implying a modest listing uptick of ~1.7–1.8% over ₹326.
Why the tepid response?
A few factors may be at play:
- Size fatigue & crowded IPO calendar: Multiple high-stakes IPOs (e.g. LG Electronics) are competing for the same pool of capital. Investors may be being selective.
- Valuation headroom is limited: Analysts argue that at 4.2–4.3× post-money earnings, the upside isn’t dramatic, making listing gains modest.
- Muted retail appetite: The retail segment is undersubscribed relative to its allocation — a sign many small investors are staying cautious.
- Strong fundamentals, but not “hype-grade”: Tata Capital’s loan book stood at ₹2.33 lakh crore as of June 2025, with assets of ₹2.52 lakh crore, and a gross NPA of just ~2.1%, among the lowest in the NBFC sector. But strong balance sheet alone may not translate into speculative fervor.
Globally, financial services listings have been more cautious lately, with interest rate uncertainty and macro risk weighing on valuations. India is no exception. This Tata Capital IPO will be watched closely — not just for its own listing gains or short-term twists, but as a test of investor conviction in financial names and large-ticket IPOs in 2025.
If Tata Capital manages even a modest pop, it could restore confidence in large financial‐sector listings. But if listing gains are lacklustre, issuers may be forced to be more conservative (or offer steeper discounts) in their future IPOs.
Today marks the final call for anyone wanting a slice of Tata Capital’s offering. With only 75% subscribed so far and a dwindling grey market premium, this may be more marathon than marathon sprint. If you’re applying now, do so with tempered expectations — the real drama might lie not in the subscription line, but in how the stock performs when it finally hits the trading screen.
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