Tata Capital IPO Details and How the Previous Tata Group IPO Performed

Tata Group enjoys a strong reputation in India’s business landscape, and its past IPOs have generally attracted significant attention. In this article, the latest offering, Tata Capital IPO, saw a gradual start on Day 1, with the total subscription level remaining low at 0.39 times.

About Tata Capital

Tata Capital operates as a Non-Banking Financial Company (NBFC), meaning it does not take deposits like a bank but borrows funds which it then lends out. Its profits come from the difference between borrowing costs and lending rates. With over ₹2,33,400 crore in loans outstanding as of June 2025, Tata Capital is India’s third-largest diversified NBFC.

Most Tata Capital’s loans focus on retail customers and small and medium enterprises (SMEs), keeping risk spread out since 98% of borrowers have loans below ₹1 crore. The company offers over 25 financial products such as car loans, business loans, home loans, and credit cards. Its reach is wide, spanning 1,516 branches across 27 states, supported by a vast network of agents and digital partners.

Financial Highlights to Watch

Tata Capital’s financial track record is promising. Revenue from operations has grown at a compound annual growth rate (CAGR) of 44% from FY23 to FY25, reaching ₹28,370 crore in FY25. Profit after tax also rose steadily, from ₹2,946 crore to ₹3,655 crore.

The quarter ending June 2025 showed a sharp profit jump of 114%, attributed to better cost control and digital automation benefits. Net Interest Margin (NIM) has held steady at about 5.2%, indicating stable profitability from its lending activities.

Tata Capital IPO: Day 1 Subscription Details

The Tata Capital IPO, open from October 6 to October 8, 2025, has a total issue size of ₹15,511.87 crore and a price band between ₹310 and ₹326 per share. Despite this scale and the group’s strong brand, the first day witnessed low subscription activity.

On Day 1 of the Tata Capital IPO, dated October 6, 2025, the subscription levels across categories were as follows: QIB (excluding anchor investors) 0.52 times, NII 0.28 times, NII above ₹10 lakh 0.18 times, NII below ₹10 lakh 0.47 times, retail 0.34 times, and employees 1.08 times, resulting in an overall subscription of 0.38 times.

Tata Group IPO History

So far, 29 Tata Group stocks have been listed on Indian stock exchanges. Tata Technologies was the most recent IPO to be listed. Here’s a quick snapshot of some of the key Tata Group stocks:

How Tata Technologies IPO Performed?

Tata Technologies’ IPO had a much stronger start in November 2023, with total subscription of 6.34 times on its first day, led by enthusiastic participation from all investor categories.

On day 1, the breakdown showed QIB subscription at 4.08 times, overall NII at 11.93 times, NII above ₹10 lakh at 12 times, NII below ₹10 lakh at 11.78 times, retail at 6.05 times, employee category at 1.27 times, and other investors at 6.34 times.

What Should Investors Expect?

Provided it sustains operational performance and manages potential risks effectively, the Tata Capital IPO could offer a long-term opportunity due to the company’s scale, diverse product portfolio, and consistent profitability.

Investors should monitor allotment updates on October 9, 2025, and look out for listing performance around October 13, 2025. The IPO’s minimum investment of nearly ₹15,000 may also influence retail participation.

Read more:Tata Motors Demerger: Key Takeaways from Stock Exchange Filings

Conclusion

The Tata Capital IPO has begun with a slow start, but it may gain momentum as the subscription period continues. Linked to a well-known and trusted brand, and backed by a growing financial services portfolio, the IPO might draw attention from investors tracking India’s capital markets.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.