Tata Capital IPO LIVE: Subscription Opens Today – The Largest NBFC Listing of the Year

The long-awaited Initial Public Offering (IPO) of Tata Capital Ltd. (TCL), the flagship financial services arm of the venerable Tata Group, opens for public subscription today, October 6, 2025. Marking one of India’s biggest public issues of the year and the largest Non-Banking Financial Company (NBFC) listing in recent history, the IPO is generating substantial buzz, largely driven by the trusted ‘Tata’ brand and the company’s strong fundamentals.

Key IPO Details and Dates

The mega-issue aims to raise a total of ₹15,511.87 crore and is a combination of a fresh issue and an Offer for Sale (OFS).

Detail	Information
IPO Open Date	Monday, October 6, 2025
IPO Close Date	Wednesday, October 8, 2025
Price Band	₹310 to ₹326 per equity share
Total Issue Size	₹15,511.87 crore
Fresh Issue	₹6,846 crore (to augment Tier-I capital)
Offer For Sale (OFS)	₹8,665.87 crore (by Tata Sons and IFC)
Minimum Lot Size	46 shares
Minimum Investment (Retail)	₹14,996 (at upper price band)
Tentative Allotment Date	October 9, 2025
Tentative Listing Date	October 13, 2025 (BSE & NSE)

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Grey Market Premium (GMP) and Subscription Status

Live Subscription Status (Day 1 – Awaiting Full Update): The subscription figures will begin to pour in from the stock exchanges shortly. Given the strong brand parentage and the company’s scale, the IPO is widely expected to see strong demand across all investor categories (QIB, NII, and Retail) over the three days.

Grey Market Premium (GMP) Today: The Grey Market Premium (GMP) for Tata Capital shares has been showing a subdued trend, with the latest premium hovering around ₹7 to ₹9 per share. This translates to an expected listing gain of approximately 2% to 3% over the upper price band of ₹326.

Tata Capital: A Financial Powerhouse

Tata Capital is the third-largest diversified NBFC in India, with a robust gross loan book of ₹2.33 lakh crore as of June 30, 2025.

• Diversified Portfolio: The company offers a comprehensive suite of over 25 lending products, including retail loans, SME finance, corporate loans, wealth management, and distribution of third-party products.
• Strong Parentage: Backed by the immense credibility of Tata Sons, Tata Capital enjoys a ‘AAA/Stable’ credit rating, which translates into lower borrowing costs compared to many peers.
• Growth Trajectory: The loan book has seen robust growth, largely supported by its expansion into retail and SME lending. The recent merger with Tata Motors Finance (TMF) has further scaled up its vehicle finance segment.
• Asset Quality: While its asset quality metrics saw a slight increase post-merger, its Gross Stage 3 Loans Ratio (2.1%) and Net Stage 3 Loans Ratio (1%) remain among the best in the diversified NBFC sector.

Should You Apply or Not? Expert Analysis

Market analysts are largely positive about the Tata Capital IPO, albeit with a measured approach, often recommending a ‘Subscribe for Long Term’ rating.

Arguments for Subscription (The ‘Pros’):

1. Brand Trust and Credit Rating: The backing of the Tata Group is its biggest strength, ensuring top-tier credit ratings, which provides a competitive advantage in funding costs.
2. Strategic Pricing: The management has strategically priced the IPO below the valuation of its comparable unlisted market price and slightly below industry leader Bajaj Finance (on a Price-to-Book basis), leaving some room for potential upside.
3. Regulatory Mandate: The IPO is driven, in part, by an RBI mandate to list as an ‘Upper Layer NBFC,’ ensuring compliance and heightened governance standards.
4. Growth Play: The company offers a stable, long-term play on India’s booming retail and SME credit market, which is projected to grow at a CAGR of 15-17% over the next few years.
5. Digital Focus: Tata Capital is aggressively investing in digital platforms, with over 97% of customer onboarding now being fully digital, which should drive operational efficiency.

Arguments for Caution (The ‘Cons’):

1. Valuation: While priced below some peers, the valuation at 3.5x FY25 Book Value is not cheap. The Return on Equity (RoE) of around 12.6% in FY25 is lower than that of some aggressive competitors.
2. Subdued Listing Gain: Unlike the blockbuster listing of Tata Technologies, the subdued GMP suggests that investors may not see massive listing-day gains.
3. Post-Merger Integration: The recent merger with Tata Motors Finance, while strategically sound, introduces the complexity of integrating a large vehicle finance book and its associated asset quality profile.
4. Intense Competition: The NBFC sector is fiercely competitive, with strong players like Bajaj Finance, Shriram Finance, and various HFCs and digital lenders vying for market share, which can pressure margins.

Conclusion on Application:

For Retail Investors with a long-term perspective and appetite for a financial sector play, a ‘Subscribe’ recommendation is warranted. The investment is backed by the stability, brand equity, and diversified business model of the Tata Group.

Investors looking solely for quick listing gains may find the potential upside (as indicated by the current GMP) to be modest. However, a strong oversubscription driven by institutional demand could still lead to better-than-expected returns on listing day.