Tata Capital IPO Day 1 Highlights: Issue booked 39% so far. Check GMP, subscription, IPO details. Apply or not?

Tata Capital IPO subscription status was 39% on day 1. The retail portion was subscribed 35%, and NII portion has been booked 29%, Qualified Institutional Buyers (QIBs) portion received 52% bids. The employee portion booked 1.10 times.

The company has received bids for 12,86,33,112 shares against 33,34,36,996 shares on offer, at 17:00 IST, according to data on BSE.

1. Prudent risk culture with robust credit underwriting and collections capabilities, ensuring stable asset quality
2. Digital and analytics at the core, driving superior experiences and outcomes

With Gross Loans of ₹2,334 billion as of June 30, 2025, the company is the third-largest diversified NBFC in India. Among large peers, it also offers the most extensive product range, with over 25 loan products designed for salaried professionals, entrepreneurs, SMEs, and corporates. Loan sizes vary from as small as ₹10,000 to over ₹1 billion, giving it a wide reach across customer segments.

The company is led by an experienced management team with deep expertise across retail, corporate, and SME lending. The Board of Directors comprises eight members, including five independent directors, ensuring strong governance. Each business vertical is headed by senior leaders supported by domain specialists and operational teams.

In May 2025, the NCLT approved the merger of TMFL with Tata Capital, effective April 1, 2024. Tata Capital issued 183.9 million equity shares to TMF Holdings Limited. The merger enhances Tata Capital’s scale in auto financing, consolidating its presence across

CVs, passenger cars, and supply chain finance. Post-integration (March 2025):

• 92.5% of commercial vehicle loans,

• 16.8% of car loans, and

• 12.8% of supply chain finance came from TMFL.

The merger strengthens product suite, geographical reach, and capital base, creating a unified platform across the auto financing ecosystem.

Profitable since 2007, TCL posted a 37.3% CAGR in Total Gross Loans (FY23– FY25) and disbursed ₹1.42 trillion in FY25, up 35.5% YoY. It has served 7.3 million customers as of June 30, 2025.

Tata Capital Ltd is the flagship financial entity of the 150-year-old Tata Group, India’s most valuable brand per Brand Finance 2025. Promoter Tata Sons has infused ₹89.7 billion in equity since 2007 and holds 88.6% of Tata Capital’s pre-Offer paid-up equity, reinforcing strong brand trust and backing.

1. Flagship financial services company of the Tata Group, with a legacy of over 150 years.
2. Third largest diversified NBFC in India, with the most comprehensive lending product suite.
3. Prudent risk culture and robust credit underwriting and collections capabilities, resulting in stable asset quality
4. Omni-channel distribution model, comprising pan-India branch network, partnerships and digital platforms
5. Digital and analytics at the core of business, driving high quality experience and business outcomes.
6. Highest credit rating with a diverse liability profile.

1. Retail Finance: Company typically offer to salaried and self-employed individuals and owners of small businesses (“Retail Customers”) a wide range of loans, such as home loans, loans against property, personal loans, business loans, two-wheeler loans, car loans, commercial vehicle loans, construction equipment loans, loans against securities, microfinance loans, and education loans. As at June 30, 2025, Retail Finance comprised 61.3% of their Total Gross Loans.
2. SME Finance: Company offer supply chain finance, equipment finance, and leasing solutions to their customers. Further, they offer term loans, cleantech and infrastructure finance, and developer finance to businesses with latest available turnover of less than or equal to ₹2.5 billion (“SME Customers”). As at June 30, 2025, SME Finance comprised 26.2% of their Total Gross Loans.
3. Corporate Finance: Company offer term loans, cleantech and infrastructure finance, and developer finance to businesses with latest available turnover of more than ₹2.5 billion (“Corporate Customers”). As at June 30, 2025, Corporate Finance comprised 12.5% of their Total Gross Loans.

“The company is committed to leverage technology and data analytics across the lending value chain to enhance efficiency, reduce costs, improve customer experience and manage risks. With a wide product portfolio covering retail, SME, housing, and corporate finance, as well as non-lending businesses such as wealth management and fund management, Tata Capital enjoys strong synergies within the Tata Group ecosystem and a diversified funding base. Investors may consider the IPO as a potential long-term investment opportunity,” said Master Capital Services Ltd.

"On valuation parse at the upper price band of Rs. 326/-, the issue is asking for a market cap of Rs. 1,38,383 cr. Based on FY 2026 annualised earnings and fully diluted post- IPO paid up capital, the company is asking for a PB of 3.2x which appears reasonably priced compare to ~4x average of its comparable listed peers, leaving healthy scope for decent listing gains and long-term value creation.

With India’s rising credit penetration, formalisation of the economy, and increasing demand for consumer and business financing, we believe Tata Capital offers investors a credible and scalable proxy to participate in the broader NBFC growth cycle. Hence, looking at all attributes we recommend investors to “SUBSCRIBE” the Tata Capital Ltd IPO for Long-term perspective," said Rajan Shinde, Research Analyst, Mehta Equities Ltd.

1. Inadequate provisioning for non-performing assets may adversely impact the company’s business, financial results, and cash flows.
2. Changes in the loan-mix may adversely affect financial metrics and asset quality, which could adversely affect business and financial conditions.
3. Reduction in interest income and/or an increase in Average Cost of Borrowings Ratio, could adversely affect profitability and results of operations

1. Continue their growth trajectory by enhancing product offerings and strengthening their distribution network
2. Continue to strengthen their risk management framework, credit underwriting and collections infrastructure to maintain high asset quality
3. Continue to leverage technology and data analytics across the lending value chain to enhance efficiency, reduce costs, improve customer experience and manage risks
4. Continue to maintain credit ratings and a diversified liability mix to optimise their borrowing costs

1. Flagship financial services company of the Tata group, with a legacy of over 150 years
2. Third largest diversified NBFC in India, with the most comprehensive lending product suite
3. Omni-channel distribution model, comprising their pan-India branch network, partnerships and digital platforms
4. Prudent risk culture and robust credit underwriting and collections capabilities, resulting in stable asset quality
5. Digital and analytics at the core of their business, driving high quality experience and business outcomes

According to the red herring prospectus (RHP), Tata Capital's listed peers include Bajaj Finance Ltd (P/E of 37.8), Shriram Finance Ltd (P/E of 300.3), Cholamandalam Investment and Finance Company Ltd (P/E of 31.5), L&T Finance Ltd (P/E of 23.1), Sundaram Finance Ltd (P/E of 26.9), and HDB Financial Services Ltd (P/E of 28.1).

"At the upper price band company is valuing at P/E of 32.3x, P/B of 3.5x to its FY25 earnings and market cap of ₹13,83,827 million post issue of equity shares.

We believe that the IPO is fully priced and recommend a “Subscribe Long Term” rating to the IPO," said Anand Rathi Research.

Tata Capital IPO is being underwritten by a group of lead managers, which includes Axis Capital, Kotak Mahindra Capital Company, BNP Paribas, HDFC Bank, HSBC Securities and Capital Markets (India) Private Limited, Citigroup Global Markets India Private Limited, ICICI Securities, IIFL Capital Services, SBI Capital Markets, and J P Morgan India. MUFG Intime India Pvt.Ltd. is the registrar of the issue.

Tata Capital IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors. The employee portion has been reserved up to 1,200,000 equity shares.

Tentatively, Tata Capital IPO basis of allotment of shares will be finalised on Thursday, October 9 and the company will initiate refunds on Friday, October 10, while the shares will be credited to the demat account of allottees on the same day following refund. Tata Capital share price is likely to be listed on BSE and NSE on Monday, October 13.

On Friday, Tata Capital, a non-banking financial company, successfully raised ₹4,642 crore from 68 institutional investors, both domestic and global. The demand for the anchor book was nearly five times higher than the amount allocated, showcasing strong interest ahead of its upcoming ₹15,512 crore public offering.

The anchor round attracted significant participation from various institutional investors, including notable names such as the Life Insurance Corporation of India (LIC), ICICI Prudential Mutual Fund, Nippon India Mutual Fund, Motilal Oswal Mutual Fund, Amansa Holdings, Nomura, Morgan Stanley, the Government Pension Fund Global, and Goldman Sachs. According to a circular on the BSE website, Tata Capital has allotted 14.24 crore equity shares to these anchor investors at a price of ₹326 per share, leading to a total transaction size of ₹4,642 crore.

Tata Capital IPO GMP today or grey market premium is ₹7.5. This indicates Tata Capital share price were trading at a premium of ₹7.5 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Tata Capital share price was indicated at ₹333.5 apiece, which is 2.30% higher than the IPO price of ₹326.

Based on the grey market activities over the last 11 sessions, the IPO's grey market premium (GMP) is trending downward and is expected to decline further. Experts report that the lowest GMP recorded is ₹7.50, while the highest reached ₹30.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.