Tata Capital Ltd - the most anticipated and largest IPO of 2025 - makes its stock market debut today. The listing follows a moderate investor response during its public issue, even as the financial services major boasts strong fundamentals and the trusted Tata Group brand behind it.

The Rs 15,511.87 crore IPO, open between October 6 and 8, was subscribed 1.96 times overall, receiving bids for 65.33 crore shares against 33.34 crore shares on offer. The issue was a pure offer-for-sale (OFS) of 33.34 crore shares by Tata Sons Pvt Ltd, the parent company.

Among investors, Qualified Institutional Buyers (QIBs) led the demand with a 3.42x subscription, while Non-Institutional Investors (NIIs) subscribed 1.98x and retail investors 1.10x. The figures indicate steady, though not euphoric, participation.

Muted listing likely as grey market premium hits zero

Ahead of its debut, the grey market premium (GMP) for Tata Capital fell to Rs 0 - a sign that the stock could list around its upper price band of Rs 326, with little to no listing-day gain. Earlier, the GMP had hovered in the 3–8% range before cooling off post final subscription data.

If the grey market sentiment holds, Tata Capital's listing on Dalal Street may be flat. However, analysts remain optimistic about the company's long-term prospects, given its diversified business model and solid financial growth trajectory.

Analysts bullish on Tata Capital's long-term story

“Tata Capital's IPO presents a solid long-term opportunity in India's expanding financial services landscape, backed by the Tata Group's credibility and well-diversified portfolio,” said Rajan Shinde, Research Analyst at Mehta Equities Ltd.

He highlighted that Tata Capital's revenue from operations grew 33.4% in FY24 and 55.8% in FY25, while net profits increased by 4% and 16.3%, respectively.“At the upper price band of Rs 326, the company's valuation appears reasonable at a price-to-book ratio of 3.2x, lower than the 4x average for its listed peers, suggesting scope for long-term value creation,” Shinde added.

Strong fundamentals, steady growth ahead

A core pillar of the Tata Group's financial services arm, Tata Capital operates across retail, corporate, and housing finance segments. Over the last two years, it has posted robust growth driven by tech-enabled lending, data analytics, and its merger with TMFL, which expanded its vehicle finance portfolio.

Experts believe that while listing-day fireworks may be missing, the company's fundamentals tell a different story. With India's NBFC sector expanding rapidly, increasing credit penetration, and the Tata brand's trust factor, many see Tata Capital as a strong long-term bet for patient investors.

MENAFN13102025007385015968ID1110186344