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Tata Capital IPO 2025: A Complete Guide for Retail Investors Tata Capital, the principal financial services company of the Tata Group, will be rolling out a blockbuster IPO in October 2025. The IPO of ₹15,512 crores will represent one of the largest offerings in India during the year. It is important to note that the timing of Tata Capital’s IPO is influenced by RBI regulations, which vaulted the company into the “upper-layer” of non-banking financial companies (NBFCs), requiring that it go public no later than 2025. Tata Capital was established in 2007 and provides consumer and commercial loans, wealth management, and other products. With ₹2.33 lakh crore in loans outstanding, Tata Capital is the third-largest diversified NBFC in India. The company has strong performance on record – for FY25, it tripled the previous year's revenue, reporting revenue of ~₹28,313 crore, and profit after tax of ~₹3,655 crore. Investor interest is bolstered by the Tata brand and the performance of the recent Tata IPOs (for example, Tata Technologies’ 2023 IPO was oversubscribed ~6.3× on Day) Below we summarize all key details – dates, pricing, grey-market premiums (GMPs), and unlisted share prices – and provide an investor-friendly analysis of the IPO’s pros and cons. Detail Tata Capital IPO Information Issue Size ₹15,512 crore (approx.) Price Band ₹310 – ₹326 per share Lot Size 46 shares (₹14,996 at upper band) Opening Date Oct 6, 2025 Closing Date Oct 8, 2025 Allotment Date Oct 9, 2025 Listing Date Oct 13, 2025 Issue Composition Fresh issue ₹6,846 cr; OFS ₹8,666 cr (Tata Sons, IFC) Tata Capital IPO Expected Date The IPO for Tata Capital will open on the 6th of October 2025 and will be offered until the 8th of October 2025. The issue was priced and announced at the end of September, with Tata Sons (the promoter) selling down its interest through an offer-for-sale (OFS) from 95.6% to zero. The company will raise about ₹6,846 crore in fresh equity (to bolster its Tier-I capital) and promoters/IFC will sell shares worth ~₹8,666 crore. According to the red-herring prospectus and press reports, subscription will close on October 8, and share allotment is likely on October 9. Listing on the BSE and NSE is expected on October 13, 2025. Recent regulatory filings confirm the timeline: the IPO’s Red Herring Prospectus was filed with SEBI on Sep 26, 2025, and anchor investors (large funds) were allotted shares on Oct 3, 2025 (raising ~₹4,641.8 crore). The offering is managed by 10 lead managers (including Axis, Citi, ICICI, JP Morgan, SBI Cap, etc.) and registered by Kfintech. Tata Capital IPO GMP Today The grey market premium (GMP) for the Tata Capital IPO – the unofficial price above the issue band – has been modest. As of October 6, 2025, market observers report a GMP around ₹8–10 per share, implying a roughly 2–3% premium over the ₹326 cap price. For example, one live update pegged the GMP at ₹10 on the morning of Oct 6. (Sources vary slightly: some websites showed ₹7–8 early on Oct 6, while others noted ~₹12 by late afternoon.) In any case, this translates to a modest estimated listing gain of only a few percent – far below the exuberant GMPs seen for some prior Tata IPOs. Investors should remember that GMP is informal and can fluctuate. It is not an official indicator and reflects supply/demand in unofficial trades. As one report cautioned, GMP may not match the final listing price. Still, the current low GMP suggests cautious sentiment: unlike some IPOs where grey markets quote huge premiums, Tata Capital’s GMP is relatively subdued (consistent with analyst comments that the IPO is “fully priced”). The table above shows the IPO cap price (₹326), so an ₹8–10 GMP would imply ~₹334–336 listing range. Tata Capital IPO Share Price Today Combining the issue price and GMP, the implied listing price for Tata Capital is estimated in the mid-₹330s. For instance, with a ₹326 issue price and ~₹10 GMP, the expected listing price is about ₹336 per share. In other words, investors buying at ₹326 and receiving the current grey-premium would get ~3% listing gain. This is in line with broker forecasts: Anand Rathi and others note “adequate headroom for a healthy listing pop” given the strong fundamentals. Investors should track the closing GMP on Oct 8. As of Oct 6 evening, one update put the GMP at ₹12.5 (i.e. ~4% of ₹326), implying a listing around ₹338.5. These numbers are volatile until the IPO closes. (FE’s liveblog gave ₹12.5 at 5:58 PM Oct 6, up from ~₹7–8 earlier.) In summary, current indicators point to a slight premium listing, but nothing explosive. Tata Capital Share Price (Unlisted) Before the IPO, Tata Capital shares traded only in the unlisted/grey market. Reports suggest unlisted share prices were far higher than the IPO band. According to press coverage, Tata Capital’s unlisted shares were around ₹735 in late September – well above the ₹326 cap. (In fact, they peaked near ₹1,125 in April 2025 before sliding to ₹735 by Sep.) Even the July 2025 rights issue was priced at ₹343, below the current IPO band. In short, retail investors who bought unlisted Tata Capital shares at previous levels face a loss on paper, since the IPO is priced deep below those prices. These disparities stem from speculative premiums in thin, unlisted trading. Analysts warn that unlisted prices often overshoot; IPO pricing is based on fundamentals and demand from roadshows, not just past grey market quotes. After listing, the market price may adjust to industry multiples. For context, at the upper band, the IPO values Tata Capital at ~₹1.39–1.46 lakh crore, which is comparable (on P/B and P/E) to peers like Bajaj Finance or Cholamandalam. Tata Capital IPO Latest News Anchor Investors: Tata Capital collected around ₹4,642 crore from anchor investors on October 3, 2025. Major domestic anchors include LIC, HDFC Mutual Fund, ICICI Pru, Aditya Birla Sun Life, Nippon India, and Motilal Oswal. Notably, leading global funds participated as anchors: Morgan Stanley, Goldman Sachs, Nomura India, and Norway’s Government Pension Fund Global. The large anchor book signals institutional interest, although a mix of heavy employee and anchor allocations means public demand will be crucial. Regulatory Context: Tata Capital is classified as an “upper-layer” NBFC by the RBI, which mandates that such companies must be listed. The listing of Tata Capital thus fulfills a regulatory requirement. (Tata Sons – the promoter – applied in 2024 to deregister as an NBFC to avoid the listing mandate, but RBI’s response is pending. Until clarified, Tata Capital proceeds with the IPO to meet the deadline.) Financial Updates: The company’s latest quarterly and annual results have been strong. For FY25 (ended June), Tata Capital reported ₹28,370–28,313 crore in revenue and ₹3,655 crore profit, up ~56% YoY. Its net interest margin (~5.2%) and net NPAs (~0.98%) were among the best in its peer group. These fundamentals have been widely cited by analysts as the basis for a long-term “Subscribe” recommendation. History of Tata Group IPOs: The Tata name has a history of successful public offerings. 29 Tata group companies are listed on exchanges in India – including household names like TCS (Tata Consultancy Services), Titan, Tata Motors, etc. The Tata Technologies IPO (Nov 2023) was oversubscribed (6.34x on Day 1), illustrating strong retail interest. Investor attention will be thick around the Tata Capital, O–for its merits but just as much as a stalking horse for Tata Sons and the entire NBFC industry. Tata Capital IPO: Should I Invest? Investing in an IPO involves weighing rewards and risks. Below are key considerations for Tata Capital’s offer: Pros / Strengths: Strong Parentage & Brand: As part of the Tata Group, the company enjoys high credibility. Trust in the Tata brand often supports IPO demand. The Tata group’s stable and long-term ownership (with Tata Sons, Tata Trusts, and IFC owning ~90% pre-IPO) adds confidence. Diversified Loan Book: Tata Capital has a wide mix of lending products – consumer loans, SME and corporate finance, wealth management, etc. Thanks to its July 2025 merger with Tata Motors Finance, it now has a significant vehicle-finance portfolio. Its exposure is broad: ~98% of borrowers have loans under ₹1 crore, which helps spread risk. Growing Business: Revenues grew ~44% CAGR over FY23–25. The company has added assets (loans) rapidly, making it India’s third-largest NBFC by loan size. Analysts note Tata Capital has maintained strong asset quality – gross Stage-3 (NPAs) around 1.5–2% (better than the industry average of ~2.6%). Low NPAs and insured defaults imply fewer provisions. Robust Earnings Performance: In FY25, Tata Capital reported a profit after tax of ₹3,655 crore on revenues of ₹28,313 crore. These are good figures for a non-banking financial company (NBFC) and represent net interest margins of close to 5.2%, which is in line with some of the larger NBFCs. The return on equity was ~12.6% and the return on assets was ~1.8%, which are lower than some peers, but profit continues to grow. Furthermore, Tata Capital has a AAA credit rating and solid capital buffers (following its rights issue), which is a positive. Analyst Sentiment: Most brokerage reports give the IPO a “Subscribe – Long Term” rating. For example, Anand Rathi and Canara Bank Securities highlight Tata Capital’s diversified product mix, technology-driven (AI-enabled) distribution, and conservative risk management. They note the issue is priced fairly relative to peers, expecting a healthy listing. With India’s credit markets poised for expansion, Tata Capital offers a play on retail and SME lending through a trusted brand. Cons / Risks: High Valuation: The IPO is priced at the top of the range, valuing Tata Capital at around 33 times FY25 earnings and around 4.2 times book. These multiples are above peer multiples (for example, Bajaj Finance trades at about 5.9 times book and 27 times earnings). Investors should be cautious because after these multiples, there may not be much upside for the stock. In fact, approximately 30% of Indian IPOs have already listed below their issue price in 2023-25, after high pre-IPO valuations. NBFC Sector Headwinds: Rising interest rates could squeeze margins, while credit growth depends on economic cycles. Tata Capital’s growth rate may decelerate if the lending environment cools. Increased competition from banks and fintechs could pressure market share. Portfolio Risks: Approximately 20% of Tata Capital’s loan book consists of unsecured loans (including personal loans, credit cards, etc.). While NPA levels are currently low, a surge in defaults (if, for example, consumer credit weakens) could force higher provisions and hurt earnings. Also, some observers note the company had several hundred legal cases (~₹765 crore contingent liability) related to loan recovery disputes. Such overhangs can be a concern, though Tata Capital has set aside funds for contingencies. Reduced Listing Pop: Given the muted GMP and high pricing, a big IPO “pop” is not guaranteed. Retail investors should set realistic expectations. If listing performance is tepid, early investors might see little paper gain. (For example, HDB Financial’s IPO last year listed only 5% above the issue price after coming 40% below the unlisted levels.) Regulatory/Governance: While Tata Capital itself has no known governance issues, remember the wider Tata Group trust saga. The stock market could be sensitive to any group-level controversies (e.g., trustee disputes within Tata Trusts). That said, the IPO has been thoroughly cleared by regulators (SEBI approved the RHP in late September), and Tata Sons has cooperated to satisfy the RBI listing rule. Bottom Line: Tata Capital’s IPO combines a strong pedigree and robust growth with a conservative, profitable balance sheet. Many analysts believe it’s suitable for long-term investors at these levels. However, it trades at rich multiples, so short-term gains may be limited. Retail investors should consider their risk appetite: the Tata name adds comfort, but one should be prepared to hold through any volatility. For beginners, it may be wise to read the full prospectus, check subscription updates (allotment on Oct 9), and wait for listing performance (on Oct 13) before deciding. To recapitulate, the Tata Capital IPO provides an opportunity for exposure to India’s growing lending markets under a marquee brand. Its size and breadth of backing signify confidence, but its expensive evaluations suggest that investors must be particularly patient. Investors would be wise to weigh the Tata advantage against the typical IPO price and timing caveats before subscribing.

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