Tata Capital IPO opens: Ratings & reviews from a dozen analysts for this Tata Group issue

The initial public offering (IPO) of Tata Capital kicks-off for subscription on Monday, October 6 and the issue will close for subscription on Wednesday, October 8. The Tata Group's non-banking financial company (NBFC) is selling its shares in the price band in the range of Rs 310-326 apiece. Bids can be made for a minimum of 46 equity shares and its multiples thereafter.

Tata Capital shall be raising a total of Rs 15,511.87 crore via its IPO, which includes a fresh share sale of 21,00,00,000 equity shares and an offer-for-sale (OFS) of up to 26,58,24,280 equity shares by Tata Sons and International Financial Corporation (IFC). Net proceeds from the issue shall be utilized towards augmentation of the company's Tier –I capital base and general corporate purposes.

Mumbai-based Tata Capital is subsidiary of Tata Sons and operates as a NBFC in India, offering a wide range of financial products and services to retail, corporate, and institutional customers. It has an extensive PAN-India distribution network comprising 1,516 branches spanning 1,109 locations across 27 states and UTs as of June 30, 2025.

Tata Capital raised a total of Rs 4,641.8 crore from 135 anchor investors as it allocated 14.23 crore equity at Rs 326 apiece. Its anchor booking included marquee names like LIC of India, Morgan Stanley, Goldman Sachs, Citigroup, Amansa Holdings, Nomura, Government Pension Global Fund, WCM Investment Management and NFU Mutual Global Alpha Fund among others.

Tata Capital reported a net profit of Rs 1,040.93 crore with a revenue of Rs 7,691.65 crore for the three-months ended on June 30, 2025. It clocked a net profit of Rs 3,655.02 crore with a revenue of Rs 28,369.87 crore for the financial year 2024-25. The company shall command a market capitalization more than Rs 1.38 lakh crore as of current valuation.

Tata Capital has reserved 12 lakh shares for its eligible employees. Of the net issue, 50 per cent shares will be reserved for qualified institutional bidders (QIBs), 15 per cent for non-institutional investors (NIIs) and 35 per cent shares for retail investors of the issue. Last heard, Tata Capital was commanding a market capitalization of Rs 28-30 apiece, suggesting nearly 10 per cent gains.

Kotak Mahindra Capital Company, Axis Capital, BNP Paribas, HDFC Bank and Citigroup Global Markets India are the book running lead managers of Tata Capital IPO and MUFG Intime India is the registrar of the issue. Shares of the company shall be listed on both BSE and NSE on October 13, Monday. Here's what a host of brokerage firms said about the IPO of Tata Capital:
 

Anand Rathi Share & Stock Brokers
Rating: Subscribe for long-term
Tata Capital, the flagship NBFC arm of the Tata Group, offers one of the widest lending product portfolios and operates through an omni-channel distribution network that includes a pan-India branch presence, strategic partnerships, and robust digital platforms. It seeks to reduce its credit cost ratio below 1% by strengthening risk management and credit underwriting, supported by digital tools and analytics, said Anand Rathi.

"Its deep integration of digital capabilities and analytics lies at the heart of its operations, ensuring superior customer experience and driving sustainable business performance. By maintaining a diversified loan portfolio across products, customers, and geographies, and increasing the share of secured lending, the company minimizes concentration risks. We believe that the IPO is fully priced and recommend a 'subscribe for long-term' rating," it added.
 

Chola Securities
Rating: Neutral
The post-issue Price-to-Book (P/BV) stands at 4.17 times and Price-to-Earnings Ratio (PER) at 37.8 times, aligning well with the industry average and suggesting scope for limited upside in relative valuation multiples. In line with industry trends, there has been slippage in asset quality, a rise in incremental credit costs, and compression in net interest margins in FY25 over FY24, said Chola Securities.

"Beyond lending, Tata Capital has thriving verticals in wealth management, insurance distribution, and private equity, contributing to fee-based income and enhancing business resilience. Post-issue, the promoter’s shareholding indicates that further dilution of promoter stake will be required over time to comply with minimum public shareholding norms," it added with 'neutral' rating.
 

LKP Securities
Rating: Subscribe
On the liabilities side, Tata Capital enjoys AAA ratings domestically, international investment grade ratings, and a well-diversified borrowing mix (bank loans, debentures, ECBs, subordinated and perpetual debt). Cost of funds averaged 7.8 per cent with leverage of ~6.5x equity in FY25, said LKP Securities, which has a 'subscribe' rating for the issue.
 

KR Choksey Finserv
Rating: Neutral
Tata Capital has recently acquired Tata Motor Finance to build its presence in passenger and commercial vehicle financing, It aims to improve its market share through expanding its presence across Tier-2 cities and beyond, by deploying its phygital platform. Over FY23-25, it has been able to scale its loan book at 37 per cent CAGR, driven by its omni-presence strategy, said KR Choksey Finserv.

On comparing its valuation and return profile of 4.1 times P/B and 1.9 per cent RoA, compared to peer average, the issue appears fairly valued. Although, we believe that it will be able to scale its loan book at healthy pace, driven by its omni channel presence and strong parentage, its returns appear low compared to other listed NBFC’s," it added with a 'neutral' tag.
 

Canara Bank Securities
Rating: Subscribe for long-term
Tata Capital is well-positioned in India’s growing NBFC sector, with strong potential in retail and SME lending supported by digital innovation. Its diversified portfolio, Tata brand trust, prudent liability management, superior asset quality, and AI-enabled phygital model underpin long-term growth, said Canara Bank Securities.

"Post-merger integration impacts from Tata Motors Finance are expected to normalize, supported by AAA ratings and a resilient funding profile. Macro tailwinds like India’s economic growth and digital adoption favor the business, though risks include regulatory changes, rate volatility, and competition," added with a 'subscribe for long-term' rating.
 

Ventura Securities
Rating: Subscribe
Tata Capital has delivered consistent financial growth driven by steady loan book expansion, improving net interest margins, and strong profitability in the past few years. It has also accelerated its digital transformation journey, leveraging analytics, automation, and AI-driven credit models to improve turnaround times and enhance customer experience, said Ventura Securities.

"Its diversified business portfolio, emphasis on sustainability through green financing, and alignment with Tata Group’s values of trust and governance reinforce its long term resilience. With a focus on retail and housing segments, conservative leverage, and sound asset quality, it is well positioned to sustain growth momentum and capture opportunities," it added with a 'subscribe' tag.
 

Arihant Capital Markets
Rating: Subscribe for long-term
With a strong growth outlook, driven by its diversified loan book of over Rs 2.3 lakh crore as of June 2025, with no single product contributing more than 20 per cent of total loans, the company plans to keep expanding its branch network while strengthening digital platforms, which already handle over 97 per cent of customer onboarding, said Arihant Capital Markets.

"Retail and housing finance are growing fast, while synergies from the TMFL merger strengthen vehicle finance. With 'AAA' domestic credit ratings, a 7.8 per cent cost of borrowing, and a focus on maintaining low Stage 3 loan ratios, we expect that it can grow sustainably while improving efficiency and profitability," it added with a 'subscribe for long-term' rating.
 

Aditya Birla Money
Rating: Subscribe
Trust is a key factor in financial services and TCL benefits from the strong Tata brand. TCI is one of the most diversified NBFCs with a strong geographical presence. It enjoys strong domestic rating (AAA) and the best possible international rating (BBB, capped by sovereign rating), ensuring the lowest cost of funds in the industry, said Aditya Birla Money.

"Liabilities are well diversified across banks, NCDs, CPs, financial institutions (NHB, SIDBI), and overseas sources (ECBs, bonds). At the upper price-band, the issue is valued at 4.5 times P/B (pre issue) and post issue it is at 4.1 times on FY25 BVPS. We recommend 'subscribe for long term' to the issue," it said.
 

Mehta Equities
Rating: Subscribe
"With India’s rising credit penetration, formalisation of the economy, and increasing demand for consumer and business financing, we believe Tata Capital offers investors a credible and scalable proxy to participate in the broader NBFC growth cycle. Hence, looking at all attributes we recommend investors to 'subscribe' to the Tata Capital IPO for Long-term perspective," said Mehta Equities.
 

SMIFS
Rating: Subscribe for long-term
With the Indian NBFC sector projected to grow at 15–18 per cent CAGR over the next three years, Tata Capital’s strong risk management, stable NPL ratios, and capital flexibility position it to sustain top-line and bottom-line momentum, strengthen market share, and continue its trajectory as a leading full-spectrum NBFC in India, said SMIFS with a 'subscribe for long-term' tag.
 

BP Equities
Rating: Subscribe
The net proceeds from the fresh equity issue will be used to augment Tier-I capital, strengthening the capital adequacy ratio and ensuring a stable leverage position, said BP Equities. "We believe that the issue is reasonably valued and recommend investors to 'subscribe' to the issue from a medium- to long-term perspective," it said.
 

Kunvarji Finserv
Rating: Subscribe for long-term
"We recommend subscribing to subscribe this IPO with a long term view. Tata Capital, the Tata Group’s flagship financial services arm, leverages strong brand equity, a diverse loan portfolio, and wide distribution to drive long-term growth. The RBI’s recent rate cut is set to boost liquidity and reduce borrowing costs, further supporting TCL’s expansion," said Kunvarji Finserv.
 

Lakshmishree Investment & Securities
Rating: Subscribe for long-term
The IPO is driven by both strategic growth plans and the regulatory mandate for Upper Layer NBFCs to list. Proceeds from the fresh issue will strategically strengthen the company's Tier-1 capital base, providing necessary fuel for onward lending and aggressive expansion in high-growth areas like retail and green finance, said Lakshmishree Investment & Securities.

"At an anticipated valuation that reflects its quality and brand premium, we recommend that investors seeking exposure to a stable, bluechip player in India’s crucial financial services sector consider 'subscribe for a long-term' perspective," it added.