October 6, 2025

Get ready to grab your chance! Tata Capital, the shining star of the Tata Group, is launching a colossal Rs 15,511 crore Initial Public Offering (IPO) from October 6 to October 8. This is one of the biggest NBFC listings ever in India, and investors are buzzing with excitement. The IPO price is set between Rs 310 and Rs 326 per share. It includes a fresh share issue of Rs 6,846 crore and an Offer for Sale (OFS) of Rs 8,665 crore by existing shareholders. The shares are expected to hit the stock market by October 13. The grey market premium (GMP) is already around 3%, signaling strong demand. Why all the hype? Tata Capital stands tall as India’s third-largest diversified NBFC, with outstanding loans reaching Rs 2.33 lakh crore as of June 30, 2025. Their loan book has been growing like a rocket, with a 37.3% compound annual growth rate from FY23 to FY25, thanks to fast retail and SME lending. In FY25 alone, the company posted an impressive net profit of Rs 3,665 crore on revenues of Rs 28,313 crore—a stunning 56% jump from the previous year! Adding to the sparkle, Tata Capital enjoys a net interest margin of 5.2% and holds some of the best asset quality ratios in the sector, with very low bad loans. Experts at Anand Rathi give a thumbs-up with a 'Subscribe–Long Term' rating. They say, "Tata Capital is a flagship financial services company of the Tata Group with one of the widest lending product portfolios and an omni-channel distribution network combining physical and digital strengths." The brokerage notes that even though the IPO is fully priced, it offers a powerful long-term growth story thanks to its scale and a digital-first approach. Canara Bank Securities also shines a spotlight on Tata Capital, calling it a "well-positioned player in India’s fast-growing NBFC sector," backed by strong parentage from Tata, a diverse portfolio, smart risk management, and AI-driven efficiency. They warn competition and rate changes are risks, but the company’s strong fundamentals and brand name will keep growth steady. Valued at about 3.5 times FY25 book value and 32 times earnings, Tata Capital's IPO price is in line with big NBFCs like Bajaj Finance and Cholamandalam Investment. The upcoming merger with Tata Motors Finance is expected to boost vehicle financing and overall size further. So, should you bid for shares? For those dreaming big on India’s expanding retail and SME credit markets, Tata Capital’s IPO offers a golden ticket to invest in one of the nation’s most trusted financial giants. (Disclaimer: Recommendations and opinions are those of experts and do not represent the Economic Times’ views.)

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Tags: Tata capital ipo, Nbfc, Stock market, Investment, Tata group, Financial services,