Author: Dev Patel | EQMint | Market News

Mumbai, October 8, 2025 — The much-anticipated Tata Capital IPO — India’s fourth-largest public issue worth ₹15,511.87 crore — is nearing the end of its subscription window today, October 8. While investor interest has remained steady, the response so far has been slower than expected, with 75% of the offered shares subscribed by the end of Day 2.

The IPO, which opened on October 6, has generated considerable buzz due to Tata Capital’s strong brand value and the Tata Group’s impeccable reputation in India’s financial services sector. However, market sentiment suggests that investors are exercising caution amid stretched valuations and tepid grey market trends.

Subscription Status: Moderate Demand Despite Strong Fundamentals

According to data available with stock exchanges, the Tata Capital IPO saw a 75% overall subscription by the end of the second day of bidding, with retail and qualified institutional buyers (QIBs) showing measured interest. The retail investor segment saw a relatively higher participation rate compared to the non-institutional and institutional categories, though large investors are expected to make their bids on the final day.

Analysts attribute the moderate subscription to a combination of factors — including fair pricing, market volatility, and a heavy IPO calendar that has left investors spoilt for choice. “While Tata Capital’s fundamentals are rock solid, investors appear selective at the moment, waiting for last-day data and broader market cues,” said a Mumbai-based fund manager.

Grey Market Premium (GMP): Signs of a Muted Listing

The grey market premium (GMP) — a key indicator of listing expectations — has softened over the last two days. As of October 8, 2025, at 7:30 AM, the Tata Capital IPO’s GMP stood at ₹6, suggesting a modest premium of around 1.84% over the issue’s upper price band of ₹326 per share.

This translates to an estimated listing price of ₹332 per share, indicating muted listing gains if current trends persist.

Industry experts suggest that the subdued GMP reflects fair valuations rather than lack of confidence in the company. “The issue is priced attractively for long-term investors, but near-term listing gains are unlikely to be significant,” noted a market analyst tracking IPO trends.

IPO Details: Price Band, Lot Size, and Key Dates

The Tata Capital IPO has been priced in the range of ₹310–₹326 per share, with a lot size of 46 shares. This means that retail investors need to invest a minimum of ₹14,996 (at the upper price band) to apply for one lot.

Key dates for investors are as follows:

• • IPO Open Date: October 6, 2025

• • IPO Close Date: October 8, 2025

• • Basis of Allotment: October 9, 2025

• • Credit of Shares to Demat Accounts: October 10, 2025

• • Listing Date: October 13, 2025 (tentatively at 10 AM on BSE and NSE)

Investors who are allotted shares will see them credited to their demat accounts on Friday, October 10, paving the way for one of the most anticipated listings of 2025 on the following Monday.

Tata Capital’s Business Overview: Strength in Diversified Financial Services

Tata Capital Limited, the financial arm of the Tata Group, has established itself as a trusted name in India’s financial services landscape. The company offers a wide range of products — from consumer loans, housing finance, and wealth management to corporate lending and investment services.

With a diversified portfolio and a strong retail focus, Tata Capital has grown rapidly over the past few years, benefiting from India’s expanding credit market and increasing financial inclusion.

As of FY25, the company reported a robust asset under management (AUM) and consistent growth in profitability, backed by sound risk management practices and a diversified revenue stream. The company’s strong parentage and disciplined governance have further bolstered investor confidence in its long-term prospects.

Analyst View: Strong Fundamentals, But Valuation Leaves Little Room for Listing Gains

According to Shruti Jain, Chief Strategy Officer at Arihant Capital Markets, the tepid grey market movement doesn’t reflect poor fundamentals but rather cautious investor sentiment due to valuation concerns.

“The grey market premium is low because the IPO is fairly priced. At 4.2–4.3x post-money, the valuations don’t leave much on the table for immediate listing gains. While the fundamentals are strong, the market is cautious, with several growth companies facing valuation pressures,” Jain said.

She added that long-term investors looking for stability, brand reliability, and growth in financial services may find Tata Capital an attractive proposition — even if the short-term excitement remains muted.

Other market watchers echoed similar sentiments, pointing out that Tata Capital’s extensive reach, strong management, and diversified business model make it a long-term wealth creation opportunity, especially as India’s credit demand continues to surge.

Market Context: IPO Rush and Investor Fatigue

The Tata Capital IPO comes at a time when the Indian primary market is witnessing an unprecedented rush of public issues across sectors — from finance and manufacturing to technology and infrastructure. With multiple large IPOs running simultaneously, investors have become increasingly selective, often prioritizing short-term listing gains over long-term fundamentals.

Moreover, global economic uncertainties, interest rate concerns, and fluctuating liquidity conditions have added to market caution. Analysts suggest that this environment may have contributed to the relatively slower subscription pace of even marquee names like Tata Capital.

Listing Expectations: Steady Debut Likely

Given the current subscription levels and grey market trends, experts expect Tata Capital’s shares to list at a modest premium, possibly in the ₹330–₹340 range, assuming stable market conditions.

However, long-term investors remain optimistic about the company’s ability to deliver consistent growth. “Tata Capital represents a strong play on India’s financial services expansion. For patient investors, the story goes beyond listing day,” said an analyst at a domestic brokerage firm.

Conclusion: A Strong Contender for Long-Term Investors

As Tata Capital’s IPO draws to a close, market watchers agree on one point — this is not a high-speculation issue but a solid, fundamentals-driven offering from one of India’s most respected business groups.

While short-term gains may be limited, Tata Capital’s diversified financial portfolio, brand credibility, and strategic positioning make it an attractive bet for investors seeking long-term stability in a volatile market.

References

1. Tata Capital IPO fails to garner full subscription after two days of share sale — Hindustan Times
2. Tata Capital IPO Day 3 GMP Live: Issue subscribed 81% … — Economic Times
3. Tata Capital IPO subscription to begin on Monday: Should you subscribe? 10 key things to know — Moneycontrol
4. Tata Capital IPO: Price, Analysis, Allotment, And GMP — Finowings

Disclaimer: This article is based on information available from public sources. It has not been reported by EQMint journalists. EQMint has compiled and presented the content for informational purposes only and does not guarantee its accuracy or completeness. Readers are advised to verify details independently before relying on them.