Tata Capital Ltd had a muted debut on the Indian stock markets on Monday, October 13, 2025, with its shares listing at a slight 1.23% premium to the issue price of Rs. 326 per share. The stock opened at Rs. 330 on both the BSE and NSE, slightly above expectations given the muted trend in the grey market premium (GMP) ahead of listing.
The Rs. 15,511.87 crore IPO was one of the most-awaited issues, attracting consistent participation from all types of investors. Despite a moderate grey market sentiment suggesting a flat listing, Tata Capital's debut did slightly better than expected.
The company's market capitalization stood at Rs. 1.39 lakh crore at the time of listing, thereby positioning it among the top non-banking financial companies (NBFCs) in India.
However, post-listing, shares slipped nearly 1% to Rs. 326.95, erasing the initial premium as profit-booking emerged in early trade.
The IPO, open between October 6 and October 8, saw an overall subscription of 1.95 times.
Qualified Institutional Buyers (QIBs) led the demand, subscribing 3.42 times their allotted quota.
The Non-Institutional Investor (NII) category was subscribed to 1.98 times, while retail investors booked their share at 1.10 times.
Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, said, “Despite modest listing gains, the company’s diversified business model, presence across retail and corporate finance, and solid fundamentals make it a compelling long-term investment. We recommend that allotted investors hold for the long term, while others may adopt a wait-and-watch strategy.”
Shivani Nyati, Head of Wealth at Swastika Investmart, also echoed a similar sentiment. “Tata Capital’s fundamentals remain sound, supported by strong parentage and stable growth. Investors can consider booking partial profits near listing levels while holding some shares for the long term. A stop-loss around Rs. 300 is advisable to protect against downside risk,” she said.
Tata Capital plans to use the IPO proceeds to strengthen its lending capacity and expand its loan portfolio across consumer, SME, and corporate segments.
JM Financial initiated coverage of Tata Capital with an 'Add' rating and price target of Rs. 360, due to Tata Capital's ability to leverage Tata Group's legacy, low cost of funds, and improvement in asset quality.
While the listing gains were muted, analysts believe Tata Capital is a long-term player in the Indian financial services sector, which is expanding, owing to its strong fundamentals, wide-ranging portfolio, and backing from the Tata Group.
The investors are advised to be patient, as steady earnings visibility, margin improvements, and favorable conditions for the sector could transform Tata Capital into one of the major growth stories among NBFCs.
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