Tata Capital's mega IPO of ₹15,500 crore was fully subscribed on October 8. QIBs subscribed 1.19x, Non-Institutional Investors (NIIs) 1.11x, and Retail Investors 0.84x. Allotment is expected by October 9, and listing will take place on BSE and NSE on October 13. Brokerages have given a positive rating for the long term.
Tata Capital IPO: Tata Capital's ₹15,500 crore IPO was fully subscribed on October 8, making it the largest public issue of 2025. The price band was set at ₹310-₹326 per share, valuing the company at approximately ₹1.38 lakh crore at the upper price band. A total of 47.58 crore shares were offered, including 21 crore fresh shares and 26.58 crore shares as an offer-for-sale. Qualified Institutional Buyers (QIBs) subscribed 1.19x, Non-Institutional Investors (NIIs) 1.11x, and Retail Investors 0.84x. Brokerages have rated it positively for the long term, citing its b capital base, AAA credit rating, and diversified portfolio.
IPO Details
Tata Capital is offering a total of 47.58 crore equity shares in this issue. This includes 21 crore fresh shares and 26.58 crore shares as an offer-for-sale by promoter Tata Sons and investor IFC. The IPO's price band was fixed at ₹310 to ₹326 per share. At the upper end of the price band, the company's valuation was approximately ₹1.38 lakh crore.
Prior to the IPO, the company had raised ₹4,642 crore from 135 anchor investors on October 3. These included prominent institutions such as LIC, Morgan Stanley, Goldman Sachs, and Amansa Holdings. Share allotment is expected by October 9, while the listing is likely to take place on BSE and NSE on October 13.
Investor Participation in IPO
Investor participation across various categories in the IPO was as follows: Qualified Institutional Buyers (QIBs) subscribed the most at 1.19 times. Non-Institutional Investors (NIIs) bid 1.11 times, and Retail Investors 0.84 times. The separate quota for employees was subscribed 2.33 times.
According to data from NSE and BSE, as of 11:45 AM, the company had received bids for 33.48 crore shares against 33.34 crore shares on offer. This indicates b investor interest in the issue.
Brokerages Give Green Light for Subscription
Analysts have termed Tata Capital's IPO positive for the long term. However, some short-term risks exist. ICICI Direct warned of potential pressure on margins and a decline in the provision-coverage ratio. They stated that an increase in the average cost of borrowing by up to 7.8 percent could impact the company's profitability.
Aditya Birla Money expressed concern over 2.1 percent of gross Stage-3 loans and the 20 percent share of unsecured loans. However, experts highlighted the company's b capital base, AAA credit rating, and diversified retail and SME portfolio, terming it positive for the balance sheet.
Several brokerages, including Anand Rathi and Aditya Birla Capital, have recommended subscribing to this issue for the long term. According to them, the company's b fundamentals and financial structure are reliable for investors.
Opportunity for Investors
Tata Capital's IPO proved attractive not only for institutional investors but also for retail investors. The company's diversified financial services and b balance sheet instilled confidence in investors. According to analysts, this investment could prove beneficial for portfolios in the long term.
