The Tata Capital IPO is nearing its final subscription deadline, with investors able to subscribe until 5 pm on Wednesday, October 8, 2025. However, unlike some recent high-profile IPOs, Tata Capital’s issue has seen a slower subscription pace, with only about 75% of shares subscribed by the second day. While full subscription is anticipated on the last day, it is unlikely to match the massive oversubscription of Tata Tech’s IPO, which garnered more than 69 times subscription. For context, government-owned IREDA received under 40 times subscription during its IPO, whereas South Korean Electronics emerged with a strong 105% subscription on its first day.
Subscription Details and Share Sale
Tata Capital, a leading non-banking financial company (NBFC), is offering 475.8 million shares in total, including 210 million fresh equity shares and 265.8 million through an offer for sale (OFS). Promoter Tata Sons is selling 230 million shares, while the International Finance Corporation (IFC) is offloading 35.8 million shares. Post-IPO, Tata Sons’ ownership will reduce to 85.4%. The IPO is priced between ₹310 and ₹326 per share, with a minimum retail lot size of 46 shares, requiring an investment of about ₹14,996 at the upper price band.
The IPO proceeds will strengthen Tata Capital’s Tier-1 capital base and support future lending activities. Tata Capital has a diverse customer base and a broad suite of over 25 lending products across retail, SME, and corporate sectors.
Grey Market and Listing Expectations
In grey market trading, Tata Capital shares showed a modest premium of around ₹6 over the issue price, suggesting an approximate listing price of ₹332. This premium is relatively modest compared to high-profile IPOs and indicates a cautious investor sentiment. Experts note that the valuation is fair, leaving limited room for significant immediate gains. The allotment process is expected on October 9, 2025, with tentative listings on NSE and BSE set for October 13.
Will Tata Capital IPO Be a Blockbuster?
While Tata Capital’s IPO is among the largest in India’s digital economy sector, the subscription pace and muted grey market premium indicate it might not achieve blockbuster status like some previous offerings. Nonetheless, the company’s robust fundamentals and strategic role in India’s financial services sector provide a solid foundation for long-term value creation.
