Tata Capital IPO Analyzed

Key Points

• Shares debuted above issue price, then slightly declined.
• Brokerage JM Financial gave a ‘Buy’ rating with a target of ₹360.
• Most loans are secured, retail finance is a major part.
• Company grew AUM by 31% in the past few years.
• A merger impacted recent performance, but recovery is expected.
• Investors showed moderate interest, subscription was 1.95 times.

On Monday, October 13, 2025, Tata Capital’s stock started trading on the stock exchange. The company, which belongs to the Tata Group, offers various financial services. The stock opened at ₹330, which was a little higher than the price that was set when the company was first offered to investors. This means investors were willing to pay a small premium for the shares.

After opening, the stock price went down by about 0.7%. It ended the day at ₹327.60. On the Bombay Stock Exchange (BSE), the stock also opened at ₹330, but it also went down by nearly 1% to ₹327.

The initial price of Tata Capital was a little bit higher than what experts expected. Before the stock started trading, shares that were not publicly offered were trading at ₹326. A brokerage firm called JM Financial thinks the stock is a good investment and predicts it will be worth ₹360 in the future. They believe this because a large part of the company’s loans are secured, and they are growing their business in the retail finance area.

Tata Capital has grown its loans by a lot recently, increasing by 31% in the last few years. However, they recently merged with Tata Motors Finance, which caused their recent growth to slow down. But, experts believe the company will recover and grow again. They predict a 20% to 34% increase in the value of their loans and profits over the next few years.

Despite this, the IPO wasn’t very popular with investors. Only 1.95 times more shares were applied for than were available. Qualified Institutional Buyers (QIBs) were particularly interested, subscribing to 3.42 times the shares available. Retail investors and non-institutional investors also showed interest, but less so.

The IPO was for a total of ₹15,511 billion. The company is using the money to strengthen its financial base and continue lending money. The IPO involved offering 210 million new shares and 265.8 million shares that were already owned by others.

The company set the price for the IPO between ₹310 and ₹326. It was offered to the public from Monday, October 6, 2025, to Wednesday, October 8, 2025. Several banks and financial firms helped with the IPO process, including MUFG Intime India, Kotak Mahindra Capital Co, and Axis Capital.

A final takeaway: Investing in the stock market involves risks, and performance can vary significantly.