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Tata Capital IPO Day 3 LIVE: Tata Capital's ₹15,512 crore IPO entered the third day of bidding today, October 8, after garnering 75% bids at the end of the second day.

The public offer by the Tata group company is open for subscription until October 8, making today the last day to apply for the issue. Tata Capital IPO price band is set at ₹310– ₹326 per share.

The issue includes a fresh issue of 21 crore equity shares and an OFS of 26.58 crore shares. Under the OFS, Tata Sons will sell 23 crore shares, and the International Finance Corporation (IFC) will offload 3.58 crore shares. Currently, Tata Sons owns 88.6% of Tata Capital, while IFC holds a 1.8% stake.

Proceeds from the fresh issue will be used to strengthen the company’s Tier-1 capital base, supporting future growth and lending activities.

The IPO is also in line with the Reserve Bank of India’s mandate requiring “upper-layer” NBFCs to be listed within three years of classification.

Tata Capital IPO GMP declined further to ₹6 today. At the prevailing GMP and upper end of the price band, Tata Capital IPO listing price could be ₹332, a premium of just 2% over the issue price.

The company is expected to list on the stock exchanges on October 13.

Tata Capital IPO sailed through on the third and final day of the bidding process today.

QIB: 1.18x

NII: 1.10x

Retail: 0.84x

Employee: 2.27x

Tata Capital IPO is a mix of offer for sale and fresh issue. While it will not receive any proceeds of the OFS, proceeds from the fresh issue will be used as follows:

➢ Augmenting its capital base to meet its future capital requirements; and

➢ General corporate purposes.

Tata Capital IPO was booked 90% as of the third day of the bidding process today. The issue garnered bids for 29,88,96,730 shares as against 33,34,36,996 shares on offer. Here's how different quotas were booked:

QIB: 0.96x

NII: 1.00x

Retail: 0.81x

Employee: 2.27x

We believe the Tata Capital IPO offers a compelling opportunity to invest in a market-leading, highly diversified financial services platform, backed by the unmatched trust and stability of the Tata Group.

The company has successfully positioned itself as a "phygital" powerhouse, serving the growing needs of India’s retail, SME, and corporate sectors through a seamless blend of physical presence and digital capabilities.

Tata Capital Ltd. boasts an impressive financial track record, with total income rising by 56% and Profit After Tax (PAT) reaching ₹3,655 Cr. in FY25. This strong performance is supported by a well-diversified loan book and robust asset quality metrics. The company also benefits from a high credit rating, which helps maintain a low cost of funds, and an integrated business model strengthened by the strategic merger with Tata Motors Finance, enhancing both scale and operational efficiency.

The IPO is driven by both strategic growth ambitions and the regulatory requirement for Upper Layer NBFCs to list. Proceeds from the fresh issue will be used to strengthen the company’s Tier-1 capital base, enabling further lending and targeted expansion into high-growth areas such as retail lending and green finance.

Given its quality fundamentals, brand premium, and alignment with long-term structural trends in India's financial services sector, we recommend investors SUBSCRIBE to the IPO with a long-term investment horizon.

Book Running Lead Managers (BRLMs):

Registrar:

Listing:

IPO Open Date: Monday, October 6, 2025

IPO Close Date: Wednesday, October 8, 2025

Tentative Allotment Date: Thursday, October 9, 2025

Initiation of Refunds: Friday, October 10, 2025

Credit of Shares to Demat: Friday, October 10, 2025

Tentative Listing Date: Monday, October 13, 2025

The third day of bidding for Tata Capital IPO kicked off today at 10 am. Investors have the option to apply for the IPO till 5 pm today.

Tata Capital Limited, the flagship financial services arm of the Tata Group with a legacy spanning over 150 years, is the third-largest diversified NBFC in India. It offers one of the widest lending product portfolios and operates through an omni-channel distribution network that includes a pan-India branch presence, strategic partnerships, and robust digital platforms.

At the same time, its deep integration of digital capabilities and analytics lies at the heart of its operations, ensuring superior customer experience and driving sustainable business performance. Tata Capital seeks to reduce its credit cost ratio below 1% by strengthening risk management and credit underwriting, supported by digital tools and analytics.

By maintaining a diversified loan portfolio across products, customers, and geographies, and increasing the share of secured lending, the company minimizes concentration risks.

At the upper price band, the company is valued at a P/E of 32.3x, P/B of 3.5x to its FY25 earnings, and a market cap of ₹13,83,827 million post issue of equity shares.

We believe that the IPO is fully priced and recommend a “Subscribe – Long Term” rating to the IPO.

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.

– Views by Abhinav Tiwari, Research Analyst at Bonanza

Tata Capital IPO GMP declined further to ₹6 today. At the prevailing GMP and upper end of the price band, Tata Capital IPO listing price could be ₹332, a premium of just 2% over the issue price. The company is expected to list on the stock exchanges on October 13.

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