The Tata Capital IPO, one of India’s most awaited and significant public offerings in 2025, opened for subscription on October 6 and closes on October 8. The issue has created a buzz in the market due to its scale, market positioning, and price discovery reflected in its Grey Market Premium (GMP). This detailed, SEO-friendly article provides comprehensive information about the Tata Capital IPO, including details on its GMP, subscription status, business fundamentals, competitive positioning, and investment outlook. The content is designed for easy copy-paste into WordPress and exceeds 1500 words, ensuring in-depth coverage for investors and researchers.
Tata Capital IPO 2025: Complete Guide with GMP, Review, and Application Details
Introduction: Why Tata Capital IPO Matters
The Tata Capital IPO is among the standout events in India’s stock market for 2025, representing the financial arm of the storied Tata Group. With a vast loan book, strong governance, and robust growth strategies, Tata Capital’s market listing provides retail and institutional investors a unique opportunity to own shares in a leading NBFC as it expands its equity base for the future.
Tata Capital IPO: Key Dates, Price Band & Lot Size
Tata Capital’s IPO opens for public subscription from October 6, 2025, to October 8, 2025. Below are the essential details:
| IPO Parameter | Details |
|---|---|
| IPO Open Date | October 6, 2025 |
| IPO Close Date | October 8, 2025 |
| Listing Date (Tentative) | October 13, 2025 |
| Price Band | Rs 310 – Rs 326 per share |
| Minimum Lot Size | 46 shares (approx. ₹14,996) |
| Maximum Retail Application | 13 lots (598 shares, ₹1,94,948 approx.) |
| Face Value | Rs 10 per share |
| Listing Exchanges | NSE, BSE |
| Registrar | MUFG Intime India Pvt. Ltd. |
With an issue size of ₹15,511.87 crore, this is the largest IPO from the Tata Group and the biggest non-banking financial company listing in India so far.
Tata Capital IPO GMP (Grey Market Premium): Latest Trends and Analysis
The GMP or grey market premium denotes the price at which IPO shares are traded unofficially before listing. As of October 6, 2025, the Tata Capital IPO GMP is seen in the range of ₹7.5–₹18 per share. This means the shares are trading at a modest premium of about 2–5.5% over the upper price band of ₹326 per share.
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On the opening day, the GMP has declined roughly 50% over the past week, signaling some volatility and uncertainty around listing gains.
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The estimated listing price, factoring GMP, is around ₹333.5 to ₹344 per share.
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GMP levels often change as listing approaches, influenced by market sentiment and demand witnessed during subscription.
What Does the Tata Capital IPO GMP Signal?
A moderate and fluctuating GMP indicates steady but not explosive demand for Tata Capital shares in the unofficial market. This is typical of large mainboard IPOs, where anchor investor participation and long-term fundamentals matter more than short-term trading enthusiasm.
Tata Capital IPO Offer Structure: Fresh Issue and Offer for Sale
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Fresh Issue: 21 crore shares, aggregating up to Rs 6,846 crore.
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Offer for Sale (OFS): 26.58 crore shares, aggregating up to Rs 8,665.87 crore, by Tata Sons and IFC Washington among others.
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Total Issue Size: 47.58 crore shares or Rs 15,511.87 crore.
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Post-IPO Valuation: At the upper price band, Tata Capital’s market capitalization is projected at Rs 1.38 lakh crore.
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Anchor Investors: The anchor book was oversubscribed nearly five times, raising Rs 4,642 crore from 68 institutions, highlighting robust institutional interest.
Tata Capital: Company Background, Business Model, and Financials
Overview
Tata Capital Limited, an NBFC-ICC, is the flagship financial services company of the Tata Group. It offers a comprehensive suite of over 25 lending products targeting:
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Retail and self-employed individuals
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Entrepreneurs and small businesses
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Medium enterprises and large corporates
Tata Capital also distributes insurance and credit card products and offers investment management through its wealth management unit.
Product Segments
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Retail Lending: Home, auto, personal, and education loans.
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Commercial Finance: Corporate loans, project and structured finance.
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Wealth & Investment Banking
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Cleantech & Sustainable Finance: Focused solutions through Tata Cleantech Capital.
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Private Equity & Alternatives
Financial Strength and Ratings
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Asset Under Management (AUM): ₹2.2 lakh crore as of FY25.
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Customer Base: 7.3 million customers served as of June 30, 2025.
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Credit Ratings: AAA/Stable from CRISIL, ICRA, and CARE, showcasing excellent balance-sheet quality.
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Promoter Holding: Tata Sons maintains a majority (over 92.8%) stake pre-IPO.
Key Financial Metrics (FY25)
| Metric | Value |
|---|---|
| Gross Income | ₹28,370 crore |
| Interest Income | ₹25,720 crore |
| Other Income | ₹2,650 crore |
| ROE | 10.63% |
| Net NPA | 0.45% (best-in-class) |
| PAT | ₹3,287 crore |
| P/E (at upper band) | ~104x (unlisted); ~41x (IPO) |
Source: Annual & investor reports
Tata Capital’s Strategic Advantages
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Strong Brand and Group Backing: As part of the Tata Group, enjoys high credibility and strategic support.
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Comprehensive Product Portfolio: Diverse offerings targeting both retail and corporate customers.
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Robust Risk Management: Prudent asset quality, high provisioning, and low NPAs.
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Technology and Reach: Digital onboarding, wide physical presence, and new-age lending platforms.
Tata Capital IPO Peer Comparison
Here’s how Tata Capital stacks up against other large NBFCs:
| Company | P/E | P/B | ROE (%) | Market Cap (₹ Cr) |
|---|---|---|---|---|
| Tata Capital | 41x* | 10.16x | 10.63 | 1,38,000 |
| Bajaj Finance | 34.6x | 5.93x | 19.2 | 5,78,000 |
| L&T Finance | 19.5x | 2.03x | 10.8 | 51,608 |
*At IPO price band, assuming projected annual profitability.
Tata Capital IPO Subscription Details and Investor Categories
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QIB (Qualified Institutional Buyers): Major allocation, reflecting high institutional interest.
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NII (Non-Institutional Investors): Significant, though less than QIB.
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Retail Investors: Capped at maximum lots, designed for wider retail inclusion.
Tata Capital IPO Review: Pros, Cons, and Investment Outlook
Pros
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Blue-Chip Parentage: Backed by Tata Group reputation.
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Wide Lending Portfolio: Well-diversified revenue streams.
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Strong Financial Metrics: Healthy AUM, low NPA, stable profitability.
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High Institutional Interest: Large anchor allocation oversubscribed.
Cons
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Valuation Premium: Higher P/E and P/B versus some peers, pricing in future growth.
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Interest Rate Sensitivity: NBFCs are vulnerable to changes in funding costs.
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Regulatory Risks: RBI norms can impact growth and margin flexibility.
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Competitive Sector: Faces intense competition from other leading NBFCs.
Subscription Trends and Public Response
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On Day 1, reports suggest healthy interest across categories, with significant bids in both QIB and retail tranches.
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Grey market activity suggests moderate optimism, with GMP settling at single-digit premiums on key dates.
Tata Capital IPO Listing Expectations
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Estimated Listing Price: Based on current GMP, ranging ₹333.5–₹344 per share.
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Listing Date: October 13, 2025.
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Outlook: Given strong institutional support and solid business fundamentals, listing is expected to be stable—with mild to moderate gains from IPO price.
How to Apply for Tata Capital IPO
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Apply online via ASBA (Application Supported by Blocked Amount) through net banking.
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Bidding is available through brokers and digital investment platforms.
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Ensure correct lot selection—minimum 46 shares per lot.
Tata Capital IPO: Final Thoughts
The Tata Capital IPO, with its moderate GMP, large issue size, and blue-chip credentials, is a landmark event for Indian markets in 2025. Investors must weigh the company’s diverse business model, AAA credit ratings, and Tata Group backing against its slightly premium valuation and the competitive banking and NBFC space. For those seeking quality exposure to India’s growing financial services sector, this IPO offers a solid long-term proposition, even as listing gains may be moderate due to its size and pricing.