Tata Capital, the financial services arm of the Tata Group, made its debut on the Indian stock exchanges today, October 13, 2025, listing at ₹330 on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). This represents a modest premium of approximately 1.2% over the IPO issue price of ₹326 per share.

IPO Details and Subscription

The Tata Capital IPO, the largest IPO of 2025, aimed to raise ₹15,511.87 crores through a combination of a fresh issue of 21.00 crore shares aggregating to ₹6,846.00 crores and an offer for sale of 26.58 crore shares aggregating to ₹8,665.87 crores. The IPO was open for subscription from October 6 to October 8, 2025, with a price band of ₹310 to ₹326 per share and a minimum lot size of 46 shares. The IPO was subscribed 1.95 times overall. The qualified institutional buyers (QIBs) portion was subscribed 3.42 times, the non-institutional investors (NIIs) portion was subscribed 1.98 times, and the retail individual investors (RIIs) portion was subscribed 1.10 times.

Market Performance and Analysis

Following the listing, the stock traded between ₹327.20 and ₹332, with a Volume Weighted Average Price (VWAP) of ₹329.94 in the early trading sessions. As of 10:02 a.m., the shares were trading at ₹327.90, resulting in a market capitalization of approximately ₹1.39 lakh crore for Tata Capital.

Ahead of the listing, analysts had signaled a muted debut for Tata Capital shares, with the Grey Market Premium (GMP) indicating a modest listing gain. Some experts believed that the IPO was fairly priced, limiting the potential for substantial listing gains but making it attractive for long-term investment.

Brokerage Recommendations

Prior to the IPO listing, brokerages like Emkay Global and JM Financial had initiated coverage on Tata Capital with "Add" ratings. However, their target prices of ₹360 per share suggested limited upside from the listing price. Emkay Global's positive stance was based on the Tata Group's brand name, a diversified product range, extensive geographical reach, and improving credit costs. JM Financial considered Tata Capital's valuation attractive compared to its peers.

Valuation

At the upper end of the IPO price band, Tata Capital is valued at approximately 4.1 times its FY25 book value and 33 times its FY25 earnings, which is slightly below the average valuation of listed peers in the NBFC sector. This valuation is seen as offering a fair entry point for long-term investors.

To Buy, Hold, or Sell?

The subdued listing of Tata Capital shares has prompted varied opinions on whether investors should buy, hold, or sell.

• Hold/Buy for Long Term: Several analysts suggest that Tata Capital's long-term prospects remain strong. The company benefits from the Tata Group's brand credibility, a diversified portfolio, and a growing presence in the Indian financial services sector. The company's revenue from operations rose 33.4% in FY2024 and 55.8% in FY2025, while net profits grew 4% in FY2024 and 16.3% in FY2025.
• Cautious Approach: Given the modest listing gains and the fully priced valuation, some analysts recommend a cautious approach. Investors seeking quick profits may be disappointed, and it may be prudent to monitor the company's performance and market conditions before making further investment decisions.

Factors to Consider

• Tata Group Brand: Tata Capital benefits significantly from its parentage, with the "Tata" brand recognized as the most valuable in India.
• Financial Performance: Tata Capital has demonstrated a consistent track record of profitability, with increasing profit after tax and a healthy return on equity.
• Risks: Investors should be aware of risks such as market volatility, macroeconomic factors, and regulatory changes affecting NBFCs. The company also has substantial borrowings, making it vulnerable to rising interest rates.

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investors should consult with certified financial advisors before making any investment decisions.