Tata Capital IPO Day 1: GMP Falls to Rs. 13; Analysts Recommend Subscribe for Long-Term

Tata Capital IPO opened for subscription on October 6, 2025. The Rs. 15,511.87 crores IPO has drawn interest from institutional and retail investors, as many brokerages have rated it as "subscribe for long term."

IPO Details

Tata Capital IPO is open for bidding until October 8, 2025, with a price band of Rs. 310-Rs. 326 per share.

The issue consists of new equity and an offer for sale (OFS). Of the total issue size, Rs. 6,846 crore will come from new shares, while Rs. 8,665.87 crore will be sold through the OFS.

The minimum bid lot is 46 shares, and the stock is proposed for listing on both the BSE and NSE. Allotment is likely to take place on October 9, with a tentative listing date of October 13, 2025. 

Grey Market Premium (GMP) Trends

According to market observers, Tata Capital IPO GMP has moderated to Rs. 13 per share, down from Rs. 20 over the weekend. 

This shows a weaker premium in early trades in the grey market, attributed to the OFS component's size and cautious behavior from investors ahead of listing day, but analysts believe that interest will increase as the week progresses.

Subscription Status

As of 11:00 am on Day 1, the IPO was subscribed 0.14 times, with the retail at 0.09 times and the non-institutional investor (NII) segment at 0.06 times. Analysts expect demand to pick up over the next two days, given Tata Capital’s strong brand equity and diversified lending portfolio.

Analyst Views: Long-Term Subscribe

According to Anand Rathi Research, Tata Capital is valued at a P/E of 32.3x and P/B of 3.5x on FY25 estimates, making the issue “fairly priced” compared to peers. The company cited some of Tata Capital's advantages: Its diversified loan portfolio, AAA credit rating, and strong risk management frameworks. 

Canara Bank Securities added that Tata Capital's house in the NBFC space, solid positioning in retail and SME lending, and its AI-driven "phygital" model, position it for good growth. 

Analysts indicated that while the IPO is fully priced, Tata Capital's long-term future potential lies in India's growing credit ecosystem, digital adoption, and steady economic growth.

Also Read: IPOs vs. Secondary Market: Which Offers Better Returns for Investors?

Should You Apply?

Experts recommend subscribing for the long term, given Tata Capital’s trusted brand, management, and consistent financial performance. While listing gains in the short term may be muted because of the tempered GMP, the IPO offers investors a chance to invest in a blue-chip financial services company with a stable business model, supported by Tata Group.