Tata Capital, the wholly owned subsidiary of Tata Sons and the flagship financial services arm of the Tata Group, made its stock market debut on Monday, October 13, 2025. Tata Capital shares were listed at ₹330 per share on both the BSE and NSE, reflecting a modest premium of 1.2% over the IPO’s upper price band of ₹326.
The IPO, which concluded its allotment process on October 9, 2025, raised ₹15,511.87 crore from the public issue. The initial public offering received healthy participation during its three-day subscription window from October 3 to October 7, 2025, with an overall subscription of 1.95 times. Investors applied for 65.12 crore shares against 33.34 crore shares on offer. Qualified Institutional Buyers (QIBs) led the subscription, applying for 32.44 crore shares against 9.49 crore shares on offer, while Non-Institutional Investors (NIIs) and Retail Investors applied for 14.10 crore and 18.21 crore shares, respectively.
Company Strengths and Market Position
Tata Capital enjoys strong parentage from the Tata Group, benefiting from high credit ratings and access to low-cost debt. Its diversified portfolio includes retail, SME, and corporate lending, wealth management, investment banking, and distribution of third-party financial products. This broad range of services helps reduce concentration risk and enhances resilience against economic or regulatory shocks.
The company’s advanced digital infrastructure supports scalable operations and efficient service delivery. With a robust branch network across India, Tata Capital is well-positioned to leverage growth opportunities in the financial services sector.
Financial Performance and Outlook
Tata Capital’s assets under management reached ₹2,33,363 crore in FY25, reflecting a CAGR of 37.3% over FY23–25, including contributions from the TMFL merger. The company maintains strong risk management practices, a high proportion of secured lending (~80%), and favourable operating metrics, underscoring stability and resilience.
At the IPO’s upper price band, Tata Capital was valued at a price-to-book ratio of approximately 3.5x and a price-to-earnings ratio of around 32.3x based on FY25 earnings. Analysts have noted that the pricing provides a reasonable entry point for long-term investors.
Tata Capital aims to use the IPO proceeds to fund future capital requirements for lending purposes, with ₹6,696.60 crore earmarked for expanding lending operations. Additional funds will be allocated to working capital and general corporate requirements.
Registrar and Book-Running Lead Managers
MUFG Intime India acted as the registrar for the IPO, while the book-running lead managers included JM Financial, ICICI Securities, Jefferies India, Kotak Mahindra Capital Company, and 360 ONE WAM.
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Conclusion
The Tata Capital IPO marks a significant milestone for the company and the Tata Group, providing investors with the opportunity to participate in one of India’s leading financial services firms. The modest listing reflects the company’s steady and conservative approach, underpinned by strong parentage, diversified operations, and robust financials. With this capital, Tata Capital is poised to continue its growth trajectory while maintaining operational resilience and strategic expansion across India’s financial services sector.
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