Tata Capital IPO Day 3 Highlights: ₹15,512-cr IPO sees 1.95x subscription so far

Tata Capital IPO sees 1.95 times subscription at 4.18 pm.

QIBs: 3.42 times

NIIs: 1.98 times

Retail: 1.08 times

Employee portion 2.89 times

QIBs: 3.41 times

NIIs: 1.97 times

Retail: 1.07 times

Tata Capital IPO has been subscribed 1.89 times at 3.24 pm on the last day of bidding. The QIBs bid 3.30 times of the offer, NIIs: 1.94 times, retail 1.05 times and employee portion 2.79 times.

Tata Capital IPO fully subscribed at 11.42 am on October 8. 

• QIBs: 1.18 times
• NIIs: 1.10 times
• Retail: 0.84 times
• Employee portion: 2.32 times

Total 1.00 times

Investors watch out for the final subscription numbers closely, as a strong finish could improve the chances of modest listing gains next week.

Stock will likely list on bourses on October 13.

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Tata Capital IPO sees 87% subscription so far on last day of bidding

Tata Capital IPO attracts 87% subscription, analysts optimistic for stable debut amid valuation concerns and market volatility.

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Tata Capital IPO has been subscribed 80% or 0.80 times at 10.15 am on the last day of bidding.

• QIBs: 0.86 times
• NIIs: 0.84 times
• Retail: 0.73 times
• Employee portion: 2.07 times

Total: 0.80 times

The mega issue Tata Capital received bids for 75 per cent at the end of Day 2. Read more

Tata Capital IPO has been subscribed 0.75 times on Day 2. 

QIBs: 0.86 times, NIIs: 0.76 times, retail: 0.67 times

Tata Capital IPO has been subscribed 73 per cent at 4.18 pm on Oct 7.

• QIBs: 0.86 times
• NIIs: 0.70 times
• Retail: 0.66 times
• Employee portion: 1.88 times

Tata Capital is well-positioned to sustain high growth, backed by strong parentage, a diversified lendingmodel, and digital execution. Its superior CAGR, expanding ecosystem, and sectoral consolidation give itclear leverage to scale profitably and capture incremental market share. Owing to such developments, we recommend to subscribe.

- Reliance Securities

Tata Capital IPO has been subscribed 60% at 2.24 pm on October 7. 

• QIB portion: 0.55 times
• NIIs: 0.63 times
• Retail: 0.61 times
• Employee portion: 1.76 times

As of 1.00 pm on October 7, the Tata Capital IPO has been 55% subscribed, with QIBs at 0.55 times, NIIs at 0.53 times, retail investors at 0.56 times, and the employee portion at 1.65 times.

Ashika describes Tata Capital as the third-largest diversified NBFC, with loans growing at a 37.3% compound annual growth rate (CAGR) between FY23 and FY25. The firm highlights strong asset quality, with gross Stage 3 loans at 2.1%, and steady growth across retail and housing segments

SBI Securities highlights Tata Capital’s strong fundamentals, including its diversified loan portfolio, robust risk management practices, and the backing of the Tata Group. They view the company as one of the most reliable and scalable NBFCs in India, positioning it well for future growth.

• QIBs: 0.52 times
• NIIs: 0.43 times
• Retail: 0.49 tunes

Deven Choksey Research: This research firm views the IPO as reasonably priced, noting a price-to-book (P/B) ratio of 4.1x and a return on assets (RoA) of 1.9%, compared to peers at 3.7x and 3%. While acknowledging the company’s brand and scale as strengths, they point out that its returns trail leading non-banking financial companies (NBFCs) such as Bajaj Finance, leading to a neutral recommendation

Anand Rathi Share & Stock Brokers has given the Tata Capital IPO a “Subscribe for the long term” recommendation. The brokerage noted that the issue appears “fully priced” at the upper end, but highlighted the company’s strong fundamentals, brand value, and diversified presence across retail, SME, and corporate lending. 

Anand Rathi believes the IPO offers a good opportunity for investors seeking long-term exposure to a well-managed and growing non-banking financial company (NBFC) backed by the Tata Group’s credibility and strong governance standards. 

• QIBs: 0.52 times
• NIIs: 0.34 times
• Retail: 0.40 times
• Total: 0.42 times

(Data at 10.12 am on October 7)

The IPO of NBFC Tata Capital Ltd received 39 per cent subscription on the first day of bidding on Monday.

The IPO got bids for 12,86,08,916 shares against 33,34,36,996 shares on offer, according to details available with the NSE. 

(PTI)

Tata Capital IPO has been subscribed 0.39 times on October 6, 2025. The QIBs led the demand with 0.52 subscriptions. NIIs booked 0.29 times and retail investors subscribed 0.35 times.

Lakshmishree Investment & Securities Limited recommends SUBSCRIBING for a long-term perspective, viewing the IPO as a compelling opportunity to invest in a stable, blue-chip player that leverages the unmatched trust and stability of the Tata Group parentage. The firm stresses that the proceeds from the fresh issue component will strategically strengthen the Tier-1 capital base, providing the necessary foundation for aggressive expansion in high-growth areas like retail and green finance.

• QIBs: 0.52 times
• NIIs: 0.28 times
• Retail: 0.34 times
• Employee portion: 1.09 times

Total: 0.38 times 

Ventura recommends Subscribe, based on Tata Capital’s positioning to sustain growth momentum and capitalize on opportunities within India’s expanding financial ecosystem. The rationale includes the company’s robust AUM growth, maintenance of industry-leading asset quality (one of the lowest GNPA ratios among large NBFCs), conservative leverage, and the increased scale and efficiency following the strategic merger with Tata Motors Finance Ltd.

LKP Research strongly recommends to SUBSCRIBE, emphasiSing Tata Capital’s market leadership as the 3rd largest diversified NBFC and its rapid expansion (37.3% CAGR growth in Total Gross Loans between FY23 and FY25). 

The brokerage notes that the company’s strong credit profile, underpinned by the highest possible domestic credit rating (AAA) and an average cost of borrowings of 7.8% in FY25, provides a significant advantage in maintaining robust asset quality (Gross Stage 3 Loans Ratio of 2.1% as of June 30, 2025).

Sensex settled with 582.95 pts or 0.72 per cent gains at 81,790.12 and Nifty 50 gained 183.40 pts or 0.74 per cent to 25,077.65.

Kunvarji wealth solution recommends to subscribe this IPO with long term view, citing TCL’s strong brand equity as the flagship financial services arm of the Tata Group and its third-largest diversified NBFC position. The firm highlights that the RBI’s recent rate cut is expected to boost liquidity and reduce borrowing costs for the company, further supporting its expansion and consistent financial performance, including a weighted average RoNW of 12.9% over the last three fiscals.

Deven Choksey assigns a NEUTRAL rating, stating that the issue appears “fairly valued” compared to its peers. The firm observed that TCL’s initial issue valuation of 4.1x TTM P/B is higher than the peer average of 3.7x TTM P/B, and its return on assets (RoA of ~1.9%) is lower than the peer average (RoA of ~3.0%). Although acknowledging the company’s ability to scale its loan book significantly due to its strong parentage and omni-channel presence, the brokerage finds the current valuation and return profile modest relative to the industry leaders.

• QIBs: 0.32 times
• NIIs: 0.20 times
• Retail: 0.28 times
• Employee portion: 0.90 times

Total: 0.28 times 

At 12.51 pm on October 6, 2025, the retail investor segment was subscribed 30 per cent, while the portions reserved for qualified institutional buyers (QIBs) and non-institutional investors (NIIs) received 2 per cent and 5 per cent subscription, respectively.

Here’s what brokerages say | READ FULL REPORT

Canara Bank Securities recommends Subscribe for long-term horizon, noting that the IPO is priced at 4x FY25 P/B, which is considered in line with peers. The firm believes TCL is well-positioned to leverage India’s growing NBFC sector, supported by its diversified portfolio, prudent liability management, superior asset quality, and the strategic advantages conferred by the Tata brand trust and the highly rated funding profile (AAA domestic rating).

• QIBs: 0.29 times
• NIIs: 0.16 times
• Retail: 0.24 times
• Employee portion: 0.76 times

Total: 0.24 times

Here’s what Abhinav Tiwari, Research Analyst at Bonanza says

LG Electronics India demonstrates a strong financial profile with FY25 ROE of 37% and ROCE of 43%, supported by its dominant position in consumer durables, robust 13% EBITDA margins, and consistent profit expansion. Its extensive manufacturing base and nationwide distribution network enhance scalability and growth visibility. The IPO appears attractively priced at a trailing PE of ~35x, reasonable against peers, with proceeds directed toward capacity expansion and market growth, unlike Tata Capital’s IPO, which is primarily an Offer for sale with limited growth infusion.

Meanwhile, Tata Capital’s muted GMP reflects investor caution despite fair valuations. The merger with Tata MotorFinance Ltd. has led to asset quality deterioration (gross NPA 7.1%, net NPA 4.4% for TMFL), raising consolidated NPAs to ~1% from 0.5% and reducing ROE to 12.6% in FY25 from 14.2% in FY24. These concerns around profitability and integration challenges have weighed on investor sentiment ahead of the IPO

BP Wealth recommends to SUBSCRIBE from a medium- to long-term perspective, believing the company is reasonably valued at a P/BV multiple of 4.1x based on the FY25 book value. The firm supports this call by pointing to TCL’s parentage, its strong growth momentum (AUM CAGR of ~37.3% during FY23–FY25), and its strong asset quality, attributed to an agile and responsive risk function utilizing advanced analytical tools, including over 80 predictive analytical models deployed across collections.

• QIBs: 0.29 times
• NIIs: 0.12 times
• Retail: 0.18 times
• Employee portion: 0.58 times

Total: 0.20 times

Ashika’s view is strongly positive, emphasising that Tata Capital is the 3rd largest diversified NBFC in India and among the fastest-growing peers, with its Total Gross Loans growing at a 37.3% CAGR from FY23 to FY25. The note highlights TCL’s robust risk management, consistently maintaining strong asset quality metrics (Gross Stage 3 Loans Ratio of 2.1% and Net Stage 3 Loans Ratio of 1.0% as of June 30, 2025), and its “phygital” strategy, which relies on a growing branch network and digital platforms where over 97% of customers are onboarded digitally.

The Tata Capital Ltd. (TCL) IPO, the flagship financial services arm of the Tata Group, has received largely positive recommendations from brokerage houses.

• QIBs: 0.29 times
• NIIs: 0.07 times
• Retail: 0.11 times
• Employee portion: 0.38 times

Total: 0.16 times 

(BSE data at 10.57 am) 

Anand Rathi assigns a Subscribe-Long Term rating, despite believing the IPO is “fully priced” at the upper price band, valuing the company at 3.5x P/B to its FY25 earnings. The recommendation is driven by TCL’s status as the third-largest diversified NBFC in India, its flagship position within the Tata Group (the most valuable brand in India), and its strong growth trajectory, having scaled Total Gross Loans at a CAGR of 37.3% from FY23 to FY25. The firm stresses that TCL’s prudent risk culture, highly granular and diversified portfolio (80% secured), and deep integration of digital capabilities justify long-term investment.

Tata Capital IPO has been subscribed 4% within 20 minutes of opening on October 6, 2025.

NIIs were subscribed 0.04 times and the retail portion stood at 0.06 times.

Aditya Birla Money Ltd. recommends to Subscribe for Long Term to the IPO, asserting that Tata Capital Ltd. (TCL) benefits significantly from the strong Tata brand, positioning it as India’s third-largest diversified NBFC with a robust legacy of trust and scale. The firm highlights that the company enjoys a strong domestic rating of AAA and the best possible international rating of BBB, which ensures the lowest cost of funds in the industry. While noting that the post-issue valuation stands at 4.1x P/B on FY25 book value per share, the brokerage supports the issue due to the company’s diversified lending powerhouse status and prudent financial management.

Tata Capital has a lower yield on advances, compared with peers – Bajaj Finance’s 16.4 per cent, Shriram Finance’s 16.5 per cent, Cholamandalam’s 14.4 per cent and L&T Finance’s 15.2 per cent. Such peers innately have higher RoAs because of higher yields.

bl Research Bureau report

Tata Capital Ltd. is poised to start taking orders for an initial public offering that may raise as much as 155 billion rupees ($1.7 billion), India’s biggest deal of its kind this year, and putting the country’s hot IPO market on course for a record month. 

The shadow lender’s shares, which are expected to start trading on Oct. 13, are being offered at 310 rupees to 326 rupees each until Wednesday, valuing the company at as high as 1.4 trillion rupees ($15.7 billion). That would make the unit of the Tata Group worth more than double HDB Financial Services Ltd., which went public earlier this year. 

Bloomberg

Ratiraj Tibrewal, CEO of Choice Capital Advisors, said, “Tata Capital, being a well-known domestic NBFC with a strong parentage, could attract wider participation, while LG may appeal more to those seeking consumer durables exposure and global brand visibility.”

Tata Capital’s ₹15,512 crore IPO drew strong demand from anchor investors, with shares worth around ₹4,642 crore allotted to them.

The anchor book was subscribed five times, attracting participation from 68 domestic and international institutional investors.

Leading participants in the anchor round included HDFC Mutual Fund, ICICI Prudential Mutual Fund, and Life Insurance Corporation of India (LIC).

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