Tata Capital IPO: Brokerages Bullish, even if GMP shows mixed trends. Do you have to subscribe?

Tata Capital, the Financial Services Arm from the Tata Group, opens its RS 15,511 Crore Initial Public Offer (IPO) for subscription on 6 October. The issue, priced between RS 310 and RS 326 per share, consists of a new edition of shares of RS 6,846 Crore and an offer for sale (OFS) of RS 8,665 Crore by existing shareholders.

The IPO closes on October 8, probably stating on October 13. The Gray Market Premium (GMP) is approximately 3%.

With this offer, Tata Capital marks one of the largest NBFC lists in Indian market history. The company is the third largest diversified non-banking financial enterprise (NBFC) in the country, with total gross loans from RS 2.33 Lakh Crore from 30 June 2025.

The loan book grew with a robust compound annual rate of 37.3% between FY23 and FY25, supported by strong growth in retail and SME loans.

The company reported a net profit of RS 3,665 Crore in FY25 with a turnover of RS 28,313 Crore, an increase of 56% on an annual basis. The net interest margin was 5.2%, while the gross and net stage 3 loan ratios were 2.1%and 1%respectively – the best in the sector.

The activa quality of Tata Capital, the diversified book and the AAA-assessed credit profile are seen as important strengths.

Do you have to subscribe?

Analysts at Anand Rathi have the IPO a subscribe-given-term assessment and note that Tata Capital is a flagship financial service provider of the TATA Group with one of the widest credit product portfolios and an Omni-Channel distribution network combine physical and digital strength.

Canara Bank Securities repeated optimism and also found a subscription for a long -term attitude. It said, Tata Capital is well positioned in the fast-growing NBFC sector of India, supported by strong parenting, diversified portfolio, careful risk management and AI-driven operational efficiency.

Although competition and interest rates are risks, the Fundamentals and Merkomente support continuing growth.

At the top price band, the problem appreciates the company at 3.5x FY25 book value and 32x income – similar to colleagues such as Bajaj Finance and Cholamandalam Investment. Analysts expect that the merger with the financing of TATA Motors will strengthen its vehicle financing segment and contribute to the overall scale.

For investors, Tata Capital’s IPO offers a play about India’s growing retail and SME credit markets through one of the most trusted financial brands in the country.

(Disclaimer: recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)