Tata Capital's ₹15,512 crore IPO was subscribed 46% on the second day. The price band is ₹310-₹326 and the Grey Market Premium (GMP) remains stable at ₹12.5. Funds raised from the IPO will be utilized to enhance Tier-1 capital and for lending activities. According to experts, the company's b fundamentals and future growth make it attractive for long-term investment.
Tata Capital IPO: Tata Group's leading NBFC, Tata Capital, has an ongoing mega IPO worth ₹15,512 crore, which received 46% subscription by the second day. The price band is ₹310 to ₹326 per share, comprising 21 crore new shares and 26.58 crore shares for Offer For Sale (OFS). The company will utilize these funds to enhance its Tier-1 capital and expand its lending activities. According to brokerage firms, the IPO's valuation is appropriate based on FY25 earnings and is attractive for long-term investment. The Grey Market Premium remains stable at ₹12.5, estimating the listing price to be around ₹338.5.
46% Subscription on Second Day
A total of 46% subscription has been recorded for the IPO as of the second day. On the first day, the IPO received a 39% subscription. Investors have until October 8th to invest in this IPO. The primary objective of the funds raised from the Tata Capital IPO is to strengthen the company's Tier-1 capital base and invest in the expansion of its future lending activities.
Company's Strengths and Network
Tata Capital is the financial services arm of the Tata Group, boasting a legacy of over 150 years. It is recognized as India's third-largest diversified NBFC. The company's greatest strength is its multi-channel distribution network. From financial year 2023 to June 2025, its branch network has registered robust growth with a CAGR of 58.3%.
The company endeavors to mitigate risk by diversifying its loan portfolio across products, customers, and geographical regions. By utilizing digital tools and analytics, Tata Capital is strengthening its risk management. The company aims to keep its credit cost ratio below 1%.
Experts' Perspective
According to brokerage firm Anand Rathi, the IPO of Tata Capital at the upper price band is valued at 32.3x P/E and 3.5x P/B based on FY25 earnings. The brokerage firm stated in its analysis that the IPO valuation is fair for FY25. Given the company's b fundamentals and future expansion potential, the firm considers it suitable for long-term investment.
Grey Market Status
The grey market for Tata Capital witnessed fluctuations prior to the IPO. However, the GMP (Grey Market Premium) now appears stable. Today, Tata Capital's GMP in the grey market was recorded at ₹12.5. This implies a 4% premium over the upper price band of ₹326, which could lead to an estimated listing price of around ₹338.5. The company's shares will be listed on stock exchanges on October 13th.
This IPO is crucial not only for Tata Capital's expansion and financial strengthening but also presents an attractive opportunity for investors. For new investors, this opportunity could prove significant for long-term investment, considering the company's b fundamentals and the reliability of the Tata Group.
