Tata Capital Makes Lukewarm Debut with 1% Premium, Lists at ₹330 Against Moderate Subscription

Tata Capital Limited, the flagship financial services company of the Tata Group and the third largest diversified NBFC in India with a comprehensive suite of 25+ lending products and 1,516 branches across 1,109 locations, made a lukewarm debut on BSE and NSE on October 13, 2025. After closing its IPO bidding between October 6-8, 2025, the company commenced trading with a modest 1% premium opening at ₹330.

 Tata Capital Listing Details

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Tata Capital Limited launched its IPO at ₹326 per share with a minimum investment of 46 shares costing ₹14,996. The IPO received moderate response with a subscription of 1.96 times - retail investors at modest 1.10 times, NII at moderate 1.98 times, and QIB at solid 3.42 times, indicating balanced institutional interest but limited retail enthusiasm in the diversified NBFC business despite the strong Tata brand backing.

First-Day Trading Performance Outlook

Listing Price: Tata Capital share price opened at ₹330 representing a premium of 1.23% from the issue price of ₹326, delivering modest gains for investors reflecting cautious market sentiment towards the NBFC sector despite the company's strong fundamentals and Tata Group association.

Growth Drivers and Challenges

Growth Drivers:

• Tata Group Legacy: Flagship financial services company backed by Tata Sons, third largest diversified NBFC in India with the most comprehensive lending product suite serving retail, corporate, and institutional customers with highest credit ratings.
• Extensive Distribution Network: Omni-channel distribution model with pan-India presence of 1,516 branches across 1,109 locations spanning 27 states and union territories, robust digital platforms, and strategic partnerships enabling wide market reach.
• Diversified Business Model: Comprehensive financial offerings including consumer loans, commercial finance, wealth management, investment banking, private equity, and cleantech finance with 25+ lending products plus non-lending segments like insurance distribution and wealth management services.

Challenges:

• Modest Market Reception: Lukewarm listing with just 1% premium despite moderate 1.96 times subscription and massive ₹4,641.83 crore anchor backing reflecting investor concerns about valuation and NBFC sector headwinds.
• Aggressive Valuation Metrics: Post-issue P/E of 33.24x and price-to-book value of 4.10x appearing aggressively priced for an NBFC, elevated debt-to-equity ratio of 6.60x (typical for lending business but requiring careful management), operating in a highly competitive and fragmented financial services segment.

Utilisation of IPO Proceeds

• Fresh Capital: ₹6,696.60 crore from the fresh issue for augmentation of Tier-I capital base to meet future capital requirements including onward lending, supporting business expansion and regulatory compliance.
• Offer for Sale: ₹8,665.87 crore through offer for sale of 26.58 crore shares by promoter Tata Sons Private Limited, reducing promoter holding from 95.6% to 85.5%.

 Financial Performance of Tata Capital

• Revenue: ₹28,369.87 crore for FY25, showing strong growth of 56% from ₹18,198.38 crore in FY24, reflecting robust business momentum across lending and non-lending segments.
• Net Profit: ₹3,655.02 crore in FY25, representing solid growth of 10% from ₹3,326.96 crore in FY24, demonstrating consistent profitability and operational efficiency despite competitive pressures.
• Financial Metrics: Moderate ROE of 12.6%, healthy RoNW of 11.2%, elevated debt-to-equity ratio of 6.60x (typical for NBFCs), post-issue P/E of 33.24x, price-to-book value of 4.10x, and an estimated market capitalisation of ₹138,382.73 crore.