Every few years, the Indian stock market witnesses an IPO that captures everyone’s attention — not just investors, but even people who’ve never looked at a balance sheet. Think Coal India (2010), LIC (2022), or Tata Technologies (2023). In 2025, that crown belongs to Tata Capital’s IPO.
This isn’t just another company coming to Dalal Street. It’s the financial-services arm of India’s most trusted conglomerate — the Tata Group. And with an IPO size of nearly ₹17,200 crore, it promises to be one of the biggest financial-sector listings in recent memory.
But here’s the real question investors are asking:
👉 Should you apply for Tata Capital’s IPO, or wait on the sidelines?
Let’s break it down step by step.
Tata Capital IPO 2025: Key Details
Structure and Timeline
- Issue Opens: October 6, 2025
- Issue Closes: October 8, 2025
- Anchor Investor Date: October 3, 2025
- Face Value: ₹10 per share
- Total Shares: 47.58 crore
- Fresh Issue: 21 crore shares
- Offer-for-Sale (OFS): 26.58 crore shares
Within the OFS:
- Tata Sons will sell 23 crore shares
- International Finance Corporation (IFC) will offload 3.58 crore shares
IPO Size and Valuation
- Expected Fundraise: ₹16,400–₹17,200 crore (~$1.85–2 billion)
- Post-IPO Valuation: $16–18 billion (~₹1.45–1.48 lakh crore)
Use of Proceeds
Funds from the fresh issue will go toward:
- Strengthening Tata Capital’s Tier-1 capital base
- Expanding lending operations and growth initiatives
- Meeting regulatory capital requirements
Why is Tata Capital Listing Now?
This IPO isn’t purely voluntary. The RBI’s NBFC framework requires all “upper-layer” NBFCs to list within three years of classification. Tata Capital was tagged as “upper layer” in September 2022, so its deadline is September 2025.
The IPO allows Tata Capital to comply with this mandate while also boosting its balance sheet at the right time.
Tata Capital: Company Profile
Tata Capital is no small player in India’s financial-services sector. It serves as the flagship NBFC of Tata Group, with a diversified business model:
- Retail Loans: Personal, home, car, and education loans
- Corporate Lending: SME loans, project finance
- Wealth Management & Advisory
- Insurance Distribution
- Housing Finance: Through subsidiary Tata Housing Finance
Financial Highlights (FY2025)
- Revenue: ₹28,313 crore
- Net Profit: ₹3,655 crore (up from ₹3,327 crore in FY2024)
- Loan Book Growth: ~40% YoY
- Gross NPA: 2.33%
- Capital Adequacy Ratio: ~18.5%
- Customer Base: ~70 lakh customers across 25+ lending products
In short, Tata Capital combines strong financials with Tata’s brand trust — a combination that’s rare in the NBFC space.
Grey Market Buzz & IPO Pricing
Here’s where things get interesting.
- Earlier in 2025, Tata Capital’s unlisted shares traded as high as ₹1,125.
- As of September 2025, prices in the grey market cooled down to ~₹735 (a 35% drop).
- Analysts expect the IPO price band to be closer to ₹400 per share.
Why such a big gap?
Because early unlisted buyers were paying a premium based on hype, not fundamentals. If the IPO comes at ₹400, the company will still command a valuation of ~₹1.48 lakh crore — which is expensive compared to peers like Bajaj Finance.
Peer Comparison: Is Tata Capital Overvalued?
Let’s compare Tata Capital’s implied multiples with peers:
| Company | P/E Ratio | P/B Ratio |
|---|---|---|
| Tata Capital (IPO est.) | ~116x | ~10.7x |
| Bajaj Finance | ~34x | ~6x |
| HDB Financial Services (IPO 2025) | ~40x | ~5x |
Clearly, Tata Capital is asking investors to pay a premium valuation. The big question: Is it justified?
The answer depends on your belief in the Tata brand’s ability to sustain growth. If the company can keep expanding its loan book while controlling NPAs, it may justify the higher multiple. But if growth slows, the stock could struggle post-listing.
Market Context: Why This IPO Matters
Tata Capital’s IPO isn’t happening in isolation. The Indian IPO market has been buzzing with blockbuster issues:
- Hyundai Motor India (2024): ₹27,870 crore (biggest in auto sector)
- HDB Financial Services (2025): ₹12,500 crore (NBFC)
- Bajaj Housing Finance (2024): ₹3,357 crore (stock surged 135% on debut)
Investors are clearly hungry for financial-sector plays, especially those backed by trusted brands. Tata Capital ticks both boxes.
Risks You Should Know
Every IPO has its risks, and Tata Capital is no exception.
- Rich Valuation: Compared to peers, pricing looks stretched.
- Rising NPAs: Loan growth is high, but so are bad loans (2.33%).
- Market Sentiment: If markets turn volatile, even Tata-backed IPOs can stumble.
- Competition: Bajaj Finance, HDFC, and fintech startups are strong rivals.
Think of it like cricket: Tata Capital is a star batsman walking in with high expectations. But if the pitch (market conditions) is tricky, even the best players can get caught out early.
Expert Views
- Arpit Jain (Arihant Capital): IPO success will depend on valuations, market mood, and liquidity.
- Khushi Mistry (Bonanza Research): Strong liquidity and retail participation could keep momentum high.
- Kotak Securities: Grey market prices (₹900–1,000) are inflated; realistic IPO pricing is ~₹400.
So, the experts agree: The brand is strong, but pricing discipline is critical.
Should You Apply for Tata Capital IPO?
Here’s a simple framework:
- Apply if:
- You believe in the long-term Tata brand story
- You’re comfortable holding despite short-term volatility
- You want exposure to India’s fast-growing NBFC sector
- Avoid if:
- You’re looking for quick listing gains
- You’re worried about overvaluation
- You prefer safer, fairly valued bets
What You Should Remember
- Tata Capital IPO opens October 6, 2025
- Size: ₹17,200 crore, one of the largest financial IPOs in India
- Promoter Tata Sons & IFC selling stake
- Funds to strengthen capital base and expand lending
- Valuation: $16–18B, at a premium vs peers
- Grey market hype cooling — IPO pricing expected around ₹400
Conclusion: Promise Meets Caution
Tata Capital’s IPO is more than just a fundraising exercise. It’s a statement of strength from the Tata Group, aligning with regulatory mandates while opening doors for retail investors to participate in its financial-services journey.
But like every big-ticket IPO, it comes with a choice: Do you trust the long-term story enough to pay a premium today?
If yes, Tata Capital could be a valuable long-term asset in your portfolio. If not, waiting and watching the post-listing performance may be the wiser move.
