Tata Capital IPO: Should you subscribe to it?

Tata Capital Ltd’s Rs 15,512-crore initial public offering (IPO) is set to be the largest-ever listing from the Tata Group and the biggest by any NBFC in India, and opens for public subscription on Monday, October 6. The issue carries a price band of Rs 310–326 a share and a lot size of 46 shares. 

The company has already raised Rs 4,642 crore from anchor investors, with the portion reportedly subscribed nearly five times, reflecting strong institutional demand ahead of the main issue.

The IPO comprises a fresh issue of 21 crore shares and an offer for sale (OFS) of about 26.6 crore shares. The basis of allotment will be finalised on Thursday, October 9, while credit to demat accounts is expected by October 10. The stock is slated to debut on the BSE and NSE on Monday, October 13.

In the grey market, Tata Capital shares are commanding a premium of Rs 24–26 over the issue price, suggesting a potential listing gain of 7–8 per cent for short-term investors at the upper end of the price band.

Here's what a host of brokerage firms said about the IPO of Tata Capital:

SBI Securities 
SBI Securities flags a recent dip in ROE and ROA — attributable to TMFL losses on a post-merger basis — but expects this to reverse as the Tata Motors Finance Ltd (TMFL) business turns profitable. The note highlights that the TMFL merger expands Tata Capital’s vehicle-finance scale and product diversity.

Deven Choksey 
Deven Choksey’s note points out that Tata Capital’s initial issue is priced at “4.1x TTM P/B” versus a peer average of “3.7x TTM P/B.” On a return profile basis — ~4.1x P/B and ~1.9 per cent RoA versus peer avg. ~3.7x P/B and ~3.0 per cent RoA — it “appears fairly valued” in his assessment.

BP Wealth 
BP Wealth analysts note the current P/BV multiple is 4.1x (based on FY25 book value) and believe the company is reasonably valued. They recommend investors to “Subscribe” from a medium- to long-term perspective.

Mehta Equities 
Mehta Equities concludes investors should “Subscribe” to the issue for a long-term perspective. Using annualised FY26 earnings and fully diluted post-IPO equity, the note calculates a post-IPO PB of about “3.2x”, which it says looks reasonable against a ~4x comparable-peer average — leaving scope for listing gains and long-term value creation. 

Canara Bank Securities
Canara Bank Securities recommends “Subscribe for long-term horizon”, arguing Tata Capital is “well-positioned in India’s growing NBFC sector” thanks to a diversified portfolio, Tata brand trust, prudent liability management, superior asset quality and an AI-enabled “phygital” model. The note flags normalization of merger-related impacts over time, while noting macro and regulatory risks (rate volatility, competition, regulatory change).

ICICI Direct 
ICICI Direct’s note highlights several strengths: (i) AUM growth to Rs 2,33,363 crore in FY25 (~37.3 per cent CAGR in FY23–25, including the TMFL merger), (ii) ~80 per cent secured book and resilient underwriting, and (iii) a strong branch network to tap growth. ICICI Direct states the company “currently commands a valuation of ~3.5x P/B on post issue basis (ex ESOP).”

Kunvarji Wealth Solutions 
Kunvarji Wealth Solutions links potential upside to the RBI’s recent rate cut — which the note says should boost liquidity and reduce borrowing costs — and recommends investors “Subscribe” with a long-term view. The note also cites weighted average EPS and RoNW metrics across recent years and reports a FY25 annualised P/E of 35.05 at the upper band.

Lakshmishree Investment & Securities
Lakshmishree recommends “Subscribe”, citing: strong Tata Group parentage and AAA ratings (low cost of funds), a diversified lending portfolio across retail/SME/corporate/green finance, robust financial growth and a digital-first “phygital” operating model. The note also flags the TMFL merger and the IPO’s role in strengthening regulatory capital.