Tata Capital IPO subscription reaches $1 billion - Is it worth investing?
The first day of the Tata Capital IPO indicates a cautious start for an offering that underwhelmed with its price band, vis-a-vis grey market premium (GMP).
The Tata Capital IPO attracted a subscription worth $1 billion (about ₹8,871 crore) by the first day of the share sale, but the anchor book accounts for half of that.
India’s largest initial public offering of 2025 attracted bids for 9.24 crore shares versus a total of 33.34 crore shares on offer—that translated into a subscription rate of 28%, according to data available on the National Stock Exchange on Monday. While the qualified institutional buyers (QIB) picked up 46% of the shares reserved for them, non-institutional investors (NIIs) bid for 17% of theirs. The portions reserved for retail investors and employees were subscribed 22% and 79%, respectively.
On 3 October 2025, the non-banking financial company raised ₹4,640 crore by selling shares to anchor investors, including funds managed by Morgan Stanley, Goldman Sachs Group Inc. and Nomura Holdings Inc. Life Insurance Corp. of India was the biggest buyer.
Tata Capital IPO GMP
The muted show for the Tata Capital IPO was visible in its grey market premium (GMP), even before the share sale commenced on Monday.
Unlisted shares of Tata Group’s non-banking financial services company traded at a premium of just ₹7.50 over the IPO price—indicating a listing price of ₹333.50 apiece, according to Investorgain. That rose to about ₹12.50-13.00 by midday.
To be sure, GMP is a signal, not a guarantee, for listing-day gains or losses. It is an informal, unregulated indicator of market sentiment. It reflects what traders are willing to pay for a stock in the unofficial market. The GMP can swing wildly, as has been the case with the Tata Capital IPO, and investors would do well to take it with a pinch of salt.
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Tata Capital IPO Details
The first initial public offering from the House of Tata since Tata Technologies Ltd.’s nearly two years ago involves the sale of 47.58 crore new and existing shares by Tata Sons Ltd., which currently holds 95.6% stake in the company.
The shares are being offered in a price band of ₹310-326 apiece, at the upper end of which the company will end up raising about ₹15,512 crore—making Tata Capital’s the biggest IPO of 2025 so far. The lot size is set at 46 shares—meaning, a minimum investment of ₹14,996.
The Tata Capital IPO is open from 6-8 October with allotment expected on 9 October. A listing is likely on 13 October.
Tata Capital IPO: The Valuation Question
One of the most striking features of the Tata Capital IPO has been the wide gap between GMP and the final price band. Unlisted shares of the company were trading at ₹735-1,125 before the price band of ₹310-326 was announced.
Still, for investors, the IPO offers exposure to the financial services arm of India’s most reputed conglomerates—the Tata Group.
Tata Capital looks attractive because the company offers a resilient business model with a focus on sustained growth, supported by a diversified mix, ICICI Direct wrote in a note.
At the upper end of the price band, Tata Capital shares could still be attractive at 3.4 times book value, according to SBI Securities. That would make it cheaper than peers, including HDB Financial Ltd. and Bajaj Finance Ltd.
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But Why A Tata Capital IPO
In September 2023, the Reserve Bank of India included Tata Capital Financial Services Ltd.—the core lending arm of Tata Capital—among 16 NBFCs designated as “upper layer”. Such lenders have to meet tougher governance, disclosure and listing norms similar to commercial banks.
As a result, Tata Capital had to go for a mandatory listing in three years—September 2026.
Promoter Tata Sons, however, decided to pre-empt the move to FY25 itself to unlock growth capital and diversify its shareholder base to financial stocks, while complying with RBI norms.
