Tata Capital IPO Opens for Subscription: Check GMP, Price Band, Lot Size, and Key Details

Tata Capital Limited (TCL), the flagship financial services arm of the Tata Group, has opened its initial public offering (IPO) from October 6 to October 8, 2025. The issue has generated strong market interest, with shares to be listed on both the NSE and BSE, and trading expected to start on October 13, 2025.

Tata Capital IPO Price Band and Lot Size

The price band for the Tata Capital IPO has been fixed between Rs 310 and Rs 326 per share, with a lot size of 46 shares. This means retail investors need a minimum investment of Rs 14,260 to participate.

The IPO consists of two components:

• Fresh issue: 21 crore shares to raise funds for augmenting Tier-I capital for future growth and lending.

• Offer for sale: 26.58 crore shares by existing shareholders, including Tata Sons (23 crore shares) and International Finance Corporation (3.58 crore shares).

The total issue size stands at 47.58 crore shares, reflecting both capital expansion and partial promoter divestment.

Company Overview and Growth

Tata Capital is the third-largest diversified NBFC in India, with gross loans of Rs 2,334 billion as of June 30, 2025. Its loan book has expanded at a compound annual growth rate (CAGR) of 37.3% from March 2023 to March 2025, making it one of the fastest-growing large NBFCs in India.

The company serves a diverse customer base of over 7.3 million borrowers since its inception in 2007. Nearly 88% of its portfolio is focused on retail and SME loans, showcasing its customer-centric and low-risk lending model.

Robust Asset Quality

Tata Capital maintains a strong asset quality, with a gross Stage 3 loan ratio of 2.1% and a provision coverage ratio of 53.9%, among the best in the sector. The high proportion of secured and small-ticket loans (80% and 98% respectively) reduces concentration risk and enhances stability.

Analysts note that Tata Capital leverages digital tools and analytics to improve underwriting efficiency and reduce credit costs, further strengthening its operational framework.

Subscription Outlook and Analyst Recommendations

According to Anand Rathi, Tata Capital’s omni-channel model—spanning 1,516 branches, digital platforms, and partner tie-ups—underpins growth and customer reach.

While the IPO is fully priced, with a P/E of 32.3x and P/B of 3.5x FY25 earnings, translating into a post-issue market cap of Rs 13.84 lakh crore, the brokerage recommends a “Subscribe – Long Term” approach. The rationale includes:

• Strong historical growth

• Diversified lending portfolio

• Robust risk management and governance

Short-term gains may be modest due to the steep pricing, but the long-term potential remains attractive for investors seeking exposure to India’s growing credit market.

Grey Market Premium (GMP) and Listing Prospects

Grey market activity indicates a premium of Rs 20–24 over the issue price, suggesting potential listing gains of 6–7%.

While this may appeal to short-term traders, market experts suggest that long-term investors are likely to benefit more as India’s credit demand continues to expand. The Tata brand, diversified loan portfolio, and solid asset quality make Tata Capital a compelling addition for long-term investment portfolios.

Conclusion

The Tata Capital IPO offers investors an opportunity to participate in the growth story of one of India’s leading NBFCs. While the issue is fully priced, the company’s strong fundamentals, robust asset quality, and wide customer reach make it a solid candidate for long-term investors. Retail participants should weigh their risk appetite and investment horizon before subscribing.