As Tata Capital's Initial Public Offering (IPO) enters its second day of subscription on October 7, 2025, investors are keenly analyzing the Grey Market Premium (GMP), subscription status, and expert reviews to make informed decisions. The IPO, which opened on October 6, 2025, will remain open until October 8, 2025. This ₹15,511.87 crore IPO is the largest from the Tata Group in recent years, aiming to provide both retail and institutional investors an opportunity to invest in the financial services arm of the conglomerate.
Subscription Status
On its first day, the Tata Capital IPO was subscribed 39% overall. Employee portion was booked 1.10 times. According to data from BSE, the retail portion was subscribed 35%, the Non-Institutional Investors (NII) portion was booked 29%, and the Qualified Institutional Buyers (QIBs) portion received 52% bids.
Grey Market Premium (GMP)
The Grey Market Premium (GMP) for Tata Capital IPO is ₹12.5 today, which was last updated on October 6th, 2025, at 05:58 PM. This translates to approximately a 4% premium over the upper price band. With the IPO price band at ₹326, the estimated listing price is ₹338.5. It's important to note that the GMP is not an official indicator and can fluctuate based on market sentiment.
Price Band and Lot Size
The price band for the Tata Capital IPO is set at ₹310 to ₹326 per share, with a face value of ₹10 each. Retail investors can apply for a minimum of 46 shares per lot, requiring a minimum investment of ₹14,996 at the upper end of the price band. Applications can be made in multiples of 46 shares. For small non-institutional investors (sNII), the lot size is 14 lots (644 shares), amounting to ₹2,09,944, while for big non-institutional investors (bNII), it is 67 lots (3,082 shares), amounting to ₹10,04,732.
Key Dates
- IPO Open Date: October 6, 2025
- IPO Close Date: October 8, 2025
- Allotment Date (Tentative): October 9, 2025
- Refund Initiation (Tentative): October 10, 2025
- Listing Date (Tentative): October 13, 2025
Review & Analyst Recommendations
SBI Securities has given a positive review of the Tata Capital IPO. Anand Rathi Share & Stock Brokers has given a "Subscribe" rating, citing strong loan-book growth, resilient margins, and low credit costs. Master Capital Services Ltd. suggests investors consider the IPO as a potential long-term investment opportunity.
About Tata Capital
Tata Capital Limited, a subsidiary of Tata Sons Private Limited, is the flagship financial services company of the Tata Group. It is registered with the Reserve Bank of India (RBI) as an Upper Layer Non-Banking Financial Company (NBFC). As of June 30, 2025, Tata Capital has served 7.3 million customers. The company offers a comprehensive suite of over 25 lending products, catering to retail, SME, and corporate clients.
Financial Performance
In FY25, Tata Capital reported a total income of ₹28,370 crore and a profit after tax (PAT) of ₹3,655 crore. The earnings per share stood at ₹9.3, and the company maintained a net NPA of 0.98%.
Objectives of the IPO
The IPO includes a fresh issue of shares aggregating up to ₹6,846 crore, which will be used to augment the company's Tier-I capital base. Additionally, there is an offer for sale (OFS) of shares aggregating up to ₹8,665.87 crore.
Points to Consider
- Brand Value: Tata Capital benefits from the strong brand recognition and trust associated with the Tata Group.
- Financial Performance: The company has demonstrated strong financial performance with consistent growth in revenue and profit.
- Market Position: Tata Capital is the third-largest diversified NBFC in India, with a wide range of financial products and services.
- Competition: The company operates in a highly competitive and fragmented market.
- Borrowings: Tata Capital has substantial borrowings, which could make it vulnerable to rising interest rates.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions.
