Tata Capital IPO listing: Shares make flat debut
Tata Capital Limited made a muted debut on the Indian stock market today, with its shares listing at ₹330 on both the BSE and NSE, reflecting a 1.23% premium over the issue price of ₹326.
Soon after the listing, the stock eased slightly to ₹326.85 on NSE but continued to trade above the issue price, News.Az reports, citing foreign media.
Ahead of the listing, brokerage firms Emkay Global and JM Financial initiated coverage on Tata Capital with ‘Add’ ratings, citing the company’s strong fundamentals and brand strength.
Emkay Global highlighted the company’s robust Tata parentage, diversified product portfolio, and broad geographical reach, which collectively minimize concentration risk. The brokerage expects sustained improvement in return on assets (RoA) and return on equity (RoE) to around 2.2% and 15.4%, respectively, by FY28, supported by improving credit costs and operational leverage.
JM Financial valued Tata Capital at 2.9x FY27E BVPS, slightly above peers like HDB Financial and below CIFC, reflecting a modest 10–12% premium/discount range. It also forecasted steady growth driven by strong asset quality and a high share of secured lending.
The ₹15,512 crore IPO, open from October 6–8, was subscribed 1.95 times overall.
QIBs: 3.42x
NIIs: 1.98x
Retail investors: 1.10x
The price band was fixed at ₹310–₹326 per share, valuing the company at around ₹1.38 lakh crore at the upper end. The issue comprised a fresh issue of 21 crore shares and an offer for sale (OFS) of 26.58 crore shares.
Proceeds from the fresh issue will be used to strengthen Tier-1 capital and support future lending growth.
Founded in 2007, Tata Capital is among India’s leading non-banking financial companies (NBFCs) with a AAA/Stable credit rating. The company has a well-diversified portfolio:
Retail finance: 61%
SME finance: 26%
Corporate loans: 13%
It offers over 25 distinct lending products and operates largely in secured business segments (80%), ensuring steady asset quality and access to low-cost funds.
While Tata Capital’s IPO debut was relatively subdued, analysts believe its long-term prospects remain solid due to its strong backing from the Tata Group, disciplined lending practices, and diversified business model.
Disclaimer: This article is for informational purposes only. The views expressed are those of brokerage firms cited. Investors should consult certified financial advisors before making investment decisions.
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