For investors, it can be quite challenging to decide if the Tata Capital IPO is a good investment or not. If you are unsure and still thinking about whether to apply or skip this IPO, don’t worry. In this article, we bring you the top important key factors and a detailed review of the Tata Capital IPO. This will help you analyze the strengths, risks, and financial details of Tata Capital, making your investment decision better.
About Company
Tata Capital is one of the leading flagship financial services companies of the Tata group and a subsidiary of Tata Sons Private Limited. The Tata group is one of India’s most honorable business groups, has a legacy of over 150 years with companies across 10 sectors, including automotive, technology, steel, financial services, aerospace & defence, and consumer & retail. According to the RHP, as of June 30, 2025, Tata Capital is the 3rd largest diversified NBFC in India with Total Gross Loans of ₹2,334.0 billion.
The company started its operations in 2007 and served 7.3 million customers. Its product portfolio consists of 25 lending products serving a comprehensive range of customers, which consists of salaried and self-employed individuals, entrepreneurs, small businesses, SMEs, and corporates. Moreover, Tata Capital also runs an omnichannel distribution model, which combines a large branch network, a strong partner network, and digital platforms to offer a seamless customer experience. As of June 30, 2025, the company has a pan-India distribution network comprising 1,516 branches across 27 States and Union Territories.
Tata Capital Key points
Tata Capital IPO comes with a no shareholder Quota, meaning the existing Tata Group shareholders won’t be able to get special reservation and can only able to apply under regular investor categories. While, having no shareholder quota does not reduce the demand of the IPO but it is a big loss for the Tata Shareholders.
Strengths
- Tata Capital is one of the leading Flagship financial services companies with a legacy of over 150 years.
- They are the 3rd largest diversified NBFC in India, known to offer a wide range of lending products.
- They operate an Omnichannel distribution model using branches across India.
- The company showed a consistent track record of strong financial performance with high-quality assets.
Weaknesses
- If any changes happen in the loan mix can negatively hurt the financial performance, asset quality, and business health.
- The company is affected by price-fluctuating interest rates, which can badly affect the lending and treasury operations, earnings, financial metrics, and overall business performance.
- The company, its promoters, Subsidiaries, and Directors may be involved in legal proceedings, meaning any negative outcomes can badly impact the business, reputation, and financial health.
- Tata Capital is dependent on third-party vendors for its operations, like loan processing, document handling, IT, and cash collection. Any issue that occurs within third-party services can negatively affect the business, cash flow, and its reputation.
Tata Capital IPO Review
| Reviewer | Recommendation |
| IPO Watch | May Apply |
| Canara Bank Securities Ltd | Apply |
| Ashika Research | |
| Lakshmishree Investment & Securities Ltd | Apply |
| Kunvarji Finstock Pvt Ltd | Apply |
| ICICI Direct | |
| SBICAP Securities Limited | |
| Nirmal Bang | |
| Sharekhan | |
| SMC Global | |
| Sushil Finance | |
| Swastika Investmart | |
| Ventura Securities | |
| Geojit | |
| Reliance Securities | |
| Capital Market | |
| BP Wealth | |
| Choice Broking |
Tata Capital IPO Details
| IPO Open Date: | October 6, 2025 |
| IPO Close Date: | October 8, 2025 |
| Face Value: | ₹10 Per Equity Share |
| IPO Price Band: | ₹310 to ₹326 Per Share |
| Issue Size: | Approx ₹15,511.87 Crores |
| Fresh Issue: | Approx ₹6,846 Crores |
| Issue Type | Book Build Issue |
| Registrar | MUFG Intime India Pvt.Ltd. |
| IPO Lead Managers | Kotak Mahindra Capital Co.Ltd. Axial Capital Pvt.Ltd. BNP Paribas Citigroup Global Markets India Pvt.Ltd. HDFC Bank Ltd. HSBC Securities & Capital Markets (India) Pvt.Ltd. ICICI Securities Ltd. IIFL Capital Services Ltd. JP Morgan India Pvt.Ltd. SBI Capital Markets Ltd. |
| Basis of Allotment | October 9, 2025 |
| IPO Listing Date: | October 13, 2025 |
| Listing | BSE, NSE |
Financial Performance Trend Details
| Particulars | 30 June 2025 | 31 March 2025 | 31 March 2023 |
| Total Income | ₹7,691.65 Crores | ₹28,369.87 Crores | ₹18,198.38 Crores |
| EBITDA | ₹5,565.86 Crores | ₹20,338.22 Crores | ₹14,247.76 Crores |
| Profit after Tax | ₹1,040.93 Crpres | ₹3,655.02 Crores | ₹3,326.96 Crores |
| Net Worth | ₹32,761.73 Crores | ₹32,587.82 Crores | ₹23,540.19 Crores |
| Total Borrowings | ₹2,11,851.60 Crores | ₹2,08,414.93 Crores | ₹1,48,185.29 Crores |
Peer Comparison with the Company
| Name of the Company | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | RoNW (%) | NAV per Equity Share (₹) | EPS (Diluted) (₹) |
| Tata Capital Ltd | ₹10 | [●] | ₹9.3 | 11.2% | ₹79.5 | ₹9.3 |
| Bajaj Finance Limited | ₹1 | 37.8 | ₹26.9 | 17.4% | ₹155.6 | ₹26.8 |
| Shriram Finance Limited | ₹2 | 12.1 | ₹50.8 | 16.8% | ₹300.3 | ₹50.8 |
| Cholamandalam Investment and Finance Company Limited | ₹2 | 31.5 | ₹50.7 | 18.0% | ₹281.5 | ₹50.6 |
| L&T Finance Limited | ₹10 | 26.9 | ₹170.5 | 13.8% | ₹102.5 | ₹170.5 |
| Sundaram Finance Limited | ₹10 | 26.9 | ₹27.4 | 14.6% | ₹1,187.8 | ₹27.3 |
| HDB Financial Services Limited | ₹10 | 28.1 | ₹27.4 | 14.6% | ₹198.8 | ₹27.4 |
Key Performance Indicator
| KPI | Values |
| ROE | 12.6% |
| Debt/Equity | 6.60 |
| RoNW | 11.2% |
| Price to Book Value | 4.10 |
Promoters & Track Records, if any
- The promoters of the company is Tata Sons Private Limited.
| Particular | Shares | % Share |
| Promoter Holding Pre Issue | 4,03,48,69,037 | 95.6% |
| Promoter Holding Post Issue | 4,24,48,69,037 | 85.5% |
Information on Industry’s P/E Ratio
The company Tata Capital did not show the P/E ratio in the RHP. In the financial services industry, the P/E ratio ranged from a low of 12.1 to a high of 37.8, with an average of 26.6.
Expansion
- The proceeds raised from the fresh issue will be utilized towards Strengthening the Tier-I capital to support future needs and lending activities.
Tata Capital IPO – Should You Apply or Not?
Tata Capital IPO comes with a strong brand backing from the Tata Group, diversified portfolio and steady growth. Its omni-channel distribution model and focus on retail and SME lending helps to strengthen the business. However, high competition, premium valuations, and sensitivity to interest rates are some key concerns.
As of October 4, the Grey market Premium of the Tata Capital is ₹15, indicating a listing gain potential of around 4% – 10%. The verdict is that the investors can consider applying for the IPO for potential listing gain due to strong brand recognition and anticipatied investor interest. While, long-term investors must first analyze growth opportunities against risks before susbcribing.
Please note:
Investors are advised to make their own decisions and apply entirely at their own risk. This article is written using information from the company’s RHP (Red Herring Prospectus) data and online sources. If you have any queries, kindly contact the IPO Watch Team.
