Tata Capital IPO to remain open for public subscription between October 6 and October 8.

Tata Capital IPO GMP Today: The much-awaited initial public offering of Tata Capital Ltd is set to be opened for public subscription tomorrow, Monday, October 6. The Rs 15,512-crore IPO will be closed on October 8. The company has fixed the price band for its IPO at Rs 310-326 per share, making it the largest issue of the year.

The non-banking financial company’s valuation stands at about Rs 1.38 lakh crore at the top end of the band.

Tata Capital IPO Opening Date, Other Key Dates

The initial public offering of Tata Capital will open for subscription on October 6 and close on October 8, with the anchor book bidding scheduled for October 3. Its share allotment will be finalised on October 9, while the listing will take place on October 13 on both the BSE and the NSE.

Tata Capital IPO Price Band Significantly Lower Than Unlisted Shares

The IPO price band of Rs 310-326 per share is 55% lower than Tata Capital’s current unlisted market price of Rs 735. It is far lower than the Rs 1,075 unlisted share price recorded in June 2025.

It means that those who bought the shares in the unlisted market now face steep losses.

Tata Capital IPO GMP Today

In the grey market, Tata Capital’s unlisted shares are currently trading at Rs 334.5 apiece, which is nearly 2.61% higher than the IPO price. It means those who receive the company’s shares in the IPO allotment might gain 2.61% listing gains.

However, it is important to note that GMP keeps changing as per investors’ sentiments.

Tata Capital IPO Lot Size

The lot size for an application is 46. The minimum amount of investment required by an retail is Rs 14,996 (46 shares), based on the upper price of the IPO. The lot size investment for small NII is 14 lots (644 shares), amounting to Rs 2,09,944, and for big NII, it is 67 lots (3,082 shares), amounting to Rs 10,04,732.

Tata Capital IPO: Should You Subscribe?

Brokerage houses are broadly positive on the Tata Capital IPO, with most recommending investors to subscribe for the long term, citing strong parentage, diversified business mix, and reasonable valuations.

According to SBI Securities, the company’s recent dip in return ratios—ROE and ROA—is expected to be temporary. The brokerage said the decline during FY25 and Q1FY26 was largely due to post-merger losses from Tata Motors Finance Ltd (TMFL), which is expected to turn profitable in the coming quarters. The merger, it added, has expanded Tata Capital’s vehicle financing portfolio, adding scale and product diversity.

Deven Choksey‘s IPO note values the issue at 4.1x trailing P/B, compared with the peer average of 3.7x, and notes that while the company’s ROA (~1.9%) trails the peer average (~3%), the issue appears fairly valued given its return profile and growth outlook.

Analysts at BP Wealth also find the IPO reasonably valued at 4.1x FY25 book value, recommending investors to subscribe from a medium- to long-term perspective.

Mehta Securities recommends a ‘Subscribe for long term’, noting that on FY26 annualised earnings, Tata Capital’s asking valuation of 3.2x P/B is lower than peers’ average of about 4x, offering potential for healthy listing gains and long-term value creation. The brokerage added that the company provides investors “a credible and scalable proxy to participate in India’s NBFC growth cycle” amid rising credit penetration and economic formalisation.

Canara Bank Securities also advises a ‘Subscribe for long-term horizon’, highlighting Tata Capital’s strong positioning in India’s NBFC sector, diversified portfolio, and digital innovation. “The IPO is priced at 4x FY25 P/B, in line with peers. Post-merger integration impacts from Tata Motors Finance are expected to normalise, supported by AAA ratings and a resilient funding profile,” it said.

In its report, ICICI Direct cited Tata Capital’s robust AUM growth to Rs 2.33 lakh crore in FY25, a 37.3% CAGR over FY23–FY25 including the TMFL merger, along with a strong risk management framework and a largely secured loan book. It pegged the IPO valuation at around 3.5x P/B on a post-issue basis (excluding ESOPs).

Lakshmishree also issued a ‘Subscribe’ rating, citing Tata Capital’s strong Tata Group parentage, diversified lending portfolio across retail, SME, corporate, and green finance segments, and a digital-first, “phygital” operating model that drives efficiency and scalability. It also highlighted the strategic merger with Tata Motors Finance, which enhances scale and regulatory compliance while strengthening Tier-1 capital.

Brokerages including Jainam and Ventura Securities have likewise recommended investors to subscribe to the issue, noting the company’s solid fundamentals and brand-driven trust advantage in India’s growing NBFC sector.

Tata Capital IPO: More Details

The IPO, comprising a total of 47.58 crore shares, includes a fresh issue of 21 crore equity shares and an Offer For Sale (OFS) of 26.58 crore shares. At the upper price band, the issue is expected to raise Rs 15,512 crore.

Under the OFS component, Tata Sons will offload 23 crore shares, while the International Finance Corporation (IFC) will divest 3.58 crore shares.

Currently, Tata Sons holds an 88.6 per cent stake in Tata Capital, while IFC owns 1.8 per cent holding.

Proceeds from the IPO will be used to strengthen the company’s Tier-1 capital base, supporting future capital requirements, including onward lending.

Tata Capital, the financial services arm of the Tata Group, had earlier filed draft papers in April through the confidential pre-filing route and secured approval from market regulator Sebi in July.

This IPO will become the largest public issue in India’s financial sector. It will also mark the Tata Group’s second public listing in recent years, following the debut of Tata Technologies in November 2023.

The IPO is being undertaken in line with the Reserve Bank of India’s (RBI) listing mandate for upper-layer NBFCs, which requires them to be listed within three years of classification. Tata Capital was designated as an upper-layer NBFC in September 2022.

In a similar move, HDB Financial Services– the non-banking arm of HDFC Bank– went public in June with a Rs 12,500 crore issue. Bajaj Housing Finance, another upper-layer NBFC, made a blockbuster market debut in September 2024, closing its first day of trade with a 135 per cent premium over the issue price.

For the financial year 2024-25, Tata Capital reported a profit after tax (PAT) of Rs 3,655 crore, up from Rs 3,327 crore in FY24. Revenue also witnessed a sharp increase to Rs 28,313 crore in FY25 from Rs 18,175 crore in the previous year.

Since commencing lending operations in 2007, Tata Capital has served over 7 million customers as of March 31, 2025. With a portfolio of more than 25 lending products, the company caters to a diverse customer base, including salaried and self-employed individuals, entrepreneurs, small businesses, SMEs, and corporates.

In addition to lending, Tata Capital also distributes third-party products such as insurance and credit cards, offers wealth management services, and acts as a sponsor and investment manager to private equity funds.

In terms of issue allocation, 50 per cent of the IPO is reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors, and the remaining 15 per cent for non-institutional investors.

The issue is being managed by a consortium of book-running lead managers, including Axis Capital, Kotak Mahindra Capital Company, BNP Paribas, HDFC Bank, HSBC Securities and Capital Markets (India) Pvt Ltd, Citigroup Global Markets India Pvt Ltd, ICICI Securities, IIFL Capital Services, SBI Capital Markets, and JPMorgan India.