Tata Capital Limited, a leading diversified NBFC from the Tata Group, is coming up with its much-awaited IPO. Backed by Tata Sons, the company offers a wide range of financial services to retail, corporate, and institutional clients. With strong brand equity, consistent growth, and a massive distribution network, this IPO has caught the attention of investors. In this article, we provide a detailed Tata Capital IPO review covering IPO date, price, issue details, financials, peer comparison, GMP, reasons to invest, risks, and whether investors should subscribe or avoid.
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About Tata Capital Ltd.
Tata Capital Limited (TCL) was incorporated in 1991 and is the flagship financial services arm of the Tata Group. It operates as a systemically important non-banking financial company (NBFC) registered with the RBI.
The company’s offerings include:
- Retail Loans: Personal, home, auto, education loans, and loan against property.
- Commercial Finance: Term loans, working capital, and equipment financing.
- Wealth Management: Portfolio management, investment advisory, and insurance distribution.
- Investment Banking & Private Equity: Advisory, fundraising, and growth capital.
- Cleantech Finance: Renewable energy, energy efficiency, and waste management financing.
As of June 30, 2025, Tata Capital had over 1,516 branches across 1,109 locations in 27 states and UTs.
Competitive Strengths
- Flagship financial services company of the Tata Group.
- Third largest diversified NBFC in India with 25+ product offerings.
- Strong omni-channel distribution network (physical + digital).
- Prudent risk management and strong underwriting capabilities.
- Highest credit ratings, enabling lower borrowing costs.
- Consistent financial performance with rising revenue and profits.
- Experienced management and strong backing from Tata Sons.
Tata Capital IPO Issue Details
- IPO Date: October 6, 2025 to October 8, 2025
- Allotment Date: October 9, 2025
- Listing Date (Tentative): October 13, 2025
- Issue Type: Book Built IPO
- IPO Price Band: ₹310 – ₹326 per share
- Face Value: ₹10 per share
- Lot Size: 46 shares
- Minimum Investment (Retail): ₹14,996 (46 shares)
- IPO Size: ₹15,511.87 crore
- Fresh Issue: ₹6,846 crore (21 crore shares)
- Offer for Sale (OFS): ₹8,665.87 crore (26.58 crore shares)
- Listing At: NSE, BSE
Tata Capital IPO Financials
| Period | Revenue (₹ Cr) | PAT (₹ Cr) | Assets (₹ Cr) | Net Worth (₹ Cr) |
|---|---|---|---|---|
| FY23 | 13,637 | 2,946 | 1,35,626 | 17,959 |
| FY24 | 18,198 | 3,327 | 1,76,694 | 23,540 |
| FY25 | 28,370 | 3,655 | 2,48,465 | 32,588 |
| Q1 FY26 | 7,692 | 1,041 | 2,52,254 | 32,762 |
Key Ratios (Post Issue):
- EPS: ₹9.81
- P/E: 33.24x
- ROE: 12.6%
- Debt/Equity: 6.6x
- Price to Book Value: 4.1x
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Peer Comparison – P/E Ratio
- Bajaj Finance: ~37x (Highest)
- Muthoot Finance: ~12x (Lowest)
- Industry Average: ~25x
- Tata Capital (Post IPO): 33.24x
Tata Capital’s valuation is slightly lower than Bajaj Finance but higher than the industry average, indicating premium pricing.
Objects of the IPO
- To augment Tier-I capital base to support future growth and lending.
- Enhance brand visibility and provide liquidity to existing shareholders through OFS.
Tata Capital IPO Grey Market Premium (GMP)
As per market sources, the Tata Capital IPO GMP is around ₹75-90 per share, indicating healthy listing gains. (Note: GMP is unofficial and subject to change).
Reasons to Invest in Tata Capital IPO
- Strong brand & Tata legacy: Trusted name with high recall value.
- Diversified business model: Retail, corporate, wealth management, and cleantech financing.
- High growth trajectory: Revenue grew by 56% YoY in FY25.
- Extensive distribution: Pan-India presence with strong digital adoption.
- Strong institutional interest: Anchor investors already subscribed for ₹4,642 crore.
- Improving profitability: PAT consistently above ₹3,000 crore for 3 years.
- Positive GMP trend: Signals strong demand.
Risk Factors
- High debt levels: Debt/Equity at 6.6x is on the higher side.
- Premium valuation: At 33x P/E, priced aggressively compared to peers.
- NBFC sector risks: Sensitive to RBI regulations, liquidity issues, and interest rate changes.
- Competition: Intense competition from banks and NBFCs like Bajaj Finance, HDFC Ltd.
- Dependence on economic cycles: Slowdowns can affect loan growth and NPAs.
How to Apply for Tata Capital IPO?
Investors can apply via:
- UPI through broker apps (Zerodha, Groww, Upstox, etc.).
- ASBA facility through net banking (SBI, ICICI, HDFC, Axis, etc.).
- Physical application via designated bank branches.
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Tata Capital IPO – Should You Invest or Avoid?
Tata Capital IPO comes with the strong Tata brand, diversified portfolio, and robust financial growth. However, IPO Price valuations are on the higher side compared to the industry. Investors looking for long-term wealth creation and exposure to a strong NBFC can consider subscribing. Short-term investors may also benefit from listing gains given the strong GMP.
Conclusion: Subscribe for long term + possible listing gains
FAQs on Tata Capital IPO
1. What is the Tata Capital IPO date?
Opens on October 6, 2025 and closes on October 8, 2025.
2. What is the Tata Capital IPO price band?
₹310 to ₹326 per share.
3. What is the Tata Capital IPO lot size?
46 shares (₹14,996 minimum investment for retail).
4. How much is Tata Capital IPO GMP today?
Around ₹75-90 per share.
5. What is Tata Capital IPO total issue size?
₹15,511.87 crore (Fresh issue + OFS).
6. Who is the registrar for Tata Capital IPO?
MUFG Intime India Pvt. Ltd.
7. Should I invest in Tata Capital IPO?
Yes, if you are looking for long-term growth and listing gains. But note the premium valuations.
Disclaimer: This article is for informational purposes only and not a recommendation to buy or sell. Investors should consult their financial advisor before investing in IPOs.
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