Shares of Tata Capital, India’s third-largest non-bank lender by revenue, made their debut on the stock exchanges today, listing at Rs 330 per share on both the National Stock Exchange and the Bombay Stock Exchange.
This opening marked a modest 1.23 per cent premium over its IPO issue price of Rs 326, but initial post-listing performance reflected tepid retail market enthusiasm.
Shortly after trading began, the stock slipped below its opening level, changing hands at Rs 327.70 on the NSE and Rs 326.65 on the BSE, down 0.71 per cent and 1.02 per cent respectively from the listing price and almost flat to the issue price.
As of 11 am, Tata Capital stock regained its ground, hitting Rs 330 on the NSE and the BSE.
IPO buzz not carried forward
The Tata Capital IPO, which ran from October 6 to 8, saw an overall subscription of 1.95 times.
The institutional investor segment reflected the strongest appetite, with Qualified Institutional Buyers subscribing 3.42 times their allotted shares.
Non-institutional investors subscribed at 1.98 times, and the retail portion saw subdued demand at 1.10 times. The IPO, worth Rs 15,511.87 crore, comprised a fresh issue of 21 crore shares raising Rs 6,846 crore and a significant offer for sale of 26.58 crore shares amounting to Rs 8,665.87 crore.
As the first Tata Group listing in nearly two years, anticipation had built steadily, reflected in initial grey market premium (GMP) discussion. However, ahead of the listing, the GMP for Tata Capital’s shares slipped to levels suggesting little premium at debut.
Some analysts noted that while GMP is an informal and volatile sentiment indicator, the eventual flat listing mirrored the cautious mood among investors, particularly in the retail segment.
Valuation of the IPO stood at 4.1 times trailing book value with a reported Return on Assets of 1.9 per cent, compared with a peer average of 3.7x P/B and 3 per cent RoA. The IPO note from Deven Choksey Research described the stock as “fairly valued” relative to sector averages.
Tata Capital is among India’s fastest-growing non-bank lenders, but investors remain watchful of challenges.
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Risks highlighted include pressure on asset quality from the recent acquisition of the vehicle finance business from Tata Motors, which brings with it elevated non-performing assets. Further risks include any adverse credit rating movement affecting future borrowing costs and exposure to technology and cybersecurity threats amid the company’s ongoing digital push.
The company’s business has diversified significantly, with over 21.9 million downloads of its mobile app and strong growth in digital channel usage as of June 2025. Its loan portfolio spans more than 25 products catering to individuals, entrepreneurs, and corporates, offering ticket sizes from Rs 10,000 to over Rs 10 crore.
Tata Capital continues to optimise borrowing costs by diversifying funding sources, including long-term instruments and external commercial borrowings, aiming for sustained business growth through both digital and traditional branches.