Tata Capital IPO Day 2 LIVE: Issue Subscribed 46% So Far; GMP Hints at 4% Listing Gains — Key Details and Expert Review

The IPO Tata Capital worth ₹15,512 crore undertook its second day of bidding on October 7, 2025, having been subscribed now at 46%. It shall remain open till October 8, shares being priced from ₹310 to ₹326 per share.

Analysts have reported that the Grey Market Premium (GMP) for the IPO has now stabilized at ₹12.5, implying a listing price of ₹338.5, 4% above the upper price band. Tata Capital shares will probably get listed on stock exchanges by October 13, 2025.

💼 Tata Capital IPO Details

The IPO includes:

• Fresh issue of 21 crore equity shares
• Offer for Sale (OFS) of 26.58 crore shares
• Tata Sons to sell 23 crore shares
• International Finance Corporation (IFC) to sell 3.58 crore shares
• Currently, Tata Sons holds an 88.6% stake in Tata Capital, while IFC owns 1.8%.

Proceeds from the fresh issue will be used to strengthen the company’s Tier-1 capital base and support future lending and growth plans. The IPO also fulfills the Reserve Bank of India’s requirement for “upper-layer” NBFCs to list within three years of classification.

📈 Subscription Status (As of Day 2 Morning)

• On the first day (October 6), the IPO was subscribed 39%, receiving 12.86 crore bids against 33.34 crore shares on offer.
• Qualified Institutional Buyers (QIBs): 52% subscribed
• Retail Investors (RIIs): 35% subscribed
• Non-Institutional Investors (NIIs): 29% subscribed
• By mid-morning on Day 2, total subscription had reached 46%.

🏦 Tata Capital’s Business Overview

Tata Capital operates in lending and non-lending segments, with lending accounting for around 97% of total income.

Its offerings include retail, SME, and corporate loans, while its non-lending business (about 3% of income) involves insurance distribution, wealth management, and PE fund management.

The company’s branch network has expanded significantly — from FY23 to FY25, it recorded a 58.3% CAGR, now operating 1,516 branches across 27 States and Union Territories.

🧾 Analyst Reviews

Choice Broking:

Rated “Subscribe for Long Term.”

Notes the IPO is fully priced at a P/BV of 3.6x (post-issue BVPS).

Acknowledges steady loan book growth and an expanding presence across India.

Highlights lower RoE and RoA compared to peers as a short-term concern.

Anand Rathi:

Also recommends “Subscribe for Long Term.”

Values the issue at P/E 32.3x and P/B 3.5x (FY25 basis).

Cites Tata Capital’s strong brand equity, diversified product portfolio, and digital-first model as long-term growth drivers.

Notes the company’s goal to bring credit cost ratio below 1% through digital analytics and risk control.

💹 Grey Market Premium (GMP) and Expected Listing

• Tata Capital IPO’s GMP stands steady at ₹12.5, signaling potential listing gains of around 4%.
• At the upper price band, shares could debut at approximately ₹338.5.
• The company’s stock market debut is scheduled for October 13, 2025.