Tata Capital IPO listing: Tata group firm’s shares debut at 1% premium

Tata Capital, the financial services arm of the Tata group, made a muted debut on the domestic bourses on Monday, listing at a 1% premium to the initial public offering (IPO) price, in sync with the bearish broader market.

Shares of Tata Capital debuted at ₹330 on the BSE, up 1.23% against the issue price of ₹326, with a market capitalisation of ₹1.4 lakh crore. On the NSE, the non-banking financial company (NBFC) stock opened at ₹330, up 1.2% from the issue price.

Meanwhile, the BSE benchmark Sensex was down 290 points at 82,210, and the NSE Nifty50 dropped 96.4 points to 25,188.

The listing of Tata Capital was broadly in line with Street expectations, as the stock was trading flat in the grey market. Ahead of listing, Tata Capital shares were commanding a grey market premium of zero in the unlisted market, indicating a flat listing.

“Despite being India’s largest IPO of 2025 and backed by the strong Tata Group brand, the listing was rather subdued compared to market expectations. The IPO had received decent investor participation, getting subscribed about 1.95 times overall, led by institutional demand,” said Shivani Nyati, Head of Wealth at Swastika Investmart Ltd.

She said that the company’s fundamentals remain sound with steady growth and strong parentage, but valuations were seen as fair, leaving limited room for listing-day excitement.

“Going ahead, investors may consider booking partial profits near listing levels while holding some shares for the long term, as the company’s growth prospects remain attractive in India’s expanding financial services sector. A stop-loss around ₹300 is advisable to protect downside risk in the near term,” Nyati added.

Tata Capital IPO subscribed 1.95 times

The ₹15,512 crore IPO of Tata Capital, India’s largest listing so far this year, was subscribed 1.95 times as the Tata group firm received bids for 65.12 crore shares against 33.34 crore shares on offer.

As per exchange data, the qualified institutional buyers (QIB) category was subscribed 3.42 times, the non-institutional investors (NII) segment was booked 1.98 times, and the retail investors’ portion received 1.10 times bidding.

The issue, with a price band of ₹310–326 per share, was open for bidding between October 6 and 8. The IPO comprised a fresh issue of 21 crore shares worth ₹6,846 crore and an offer for sale of 26.58 crore shares aggregating to ₹8,665.87 crore.

The company proposes to utilise the net proceeds from the fresh issue to augment its capital base to meet future capital requirements.

Tata Capital’s IPO is the largest public issue of 2025, surpassing the ₹12,500 crore IPO of HDB Financial Services, a subsidiary of HDFC Bank, and the biggest since Hyundai Motor India’s record ₹27,870 crore offering last year. It also marks the Tata group’s second market debut in recent years, following Tata Technologies’ listing in November 2023.

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