Tata Capital’s Mega IPO Opens: GMP Hovers, Key Facts, Should You Apply?

Mumbai, 6 October 2025— Tata Capital’s much-anticipated initial public offering (IPO) has officially opened for subscription today, marking one of the largest NBFC listings seen this year. Investors and market watchers are watching closely — with the grey market premium (GMP) offering early sentiment clues — as the company aims to debut its shares in the public markets by October 13.

Context & Background

Tata Capital Ltd., the financial services arm of the Tata Group, has structured this IPO as a mix of fresh issue and Offer for Sale (OFS), targeting a total raise of about ₹15,511.87 crore. The Economic Times+3The Financial Express+3The Times of India+3 The price band has been set between ₹310 and ₹326 per equity share (face value ₹10). The Economic Times+4mint+4The Financial Express+4

Of the total issue, about 21 crore shares are being offered freshly (to strengthen capital) while 26.58 crore shares are being sold via OFS by existing shareholders — mainly Tata Sons and International Finance Corporation (IFC). The Times of India+4mint+4The Financial Express+4 The anchor tranche, opened earlier on October 3, saw strong traction — ₹4,642 crore was raised from anchor investors. The Economic Times+3Moneycontrol+3Reuters+3

Tata Capital’s business spans retail lending, vehicle and commercial finance, SME lending, as well as investment, wealth and insurance distribution services. ipo360.in+3The Financial Express+3Moneycontrol+3 Over recent years, the company has reported healthy growth in its loan book, net interest income, and profitability. ipo360.in+3The Financial Express+3Moneycontrol+3

GMP & Market Sentiment

In the days leading up to the subscription period, Tata Capital’s shares have been trading in the grey market at a premium — reflecting expectations for listing gains. Reuters+8Moneycontrol+8Investor Gain+8 Some platforms peg the GMP around ₹7.5 per share, implying modest listing upside from the upper band. IPO Watch+3mint+3The Economic Times+3 Other trackers earlier placed GMP between ₹18–₹28, suggesting stronger sentiment — though such estimates are volatile and change day to day. The Economic Times+5Trading Minds+5IPO Ji+5

However, analysts caution that GMP is an informal indicator. “GMP gives a flavor of demand, but it’s not a guarantee of listing performance,” says an IPO market commentator.

Brokerage reports have mostly leaned positive. One note from Mehta Equities states:

“On valuation parse at the upper price band of Rs 326/-, the issue is asking for a market cap of Rs 1,38,383 cr … the issue appears reasonably priced … leaving healthy scope for listing gains and long-term value creation.” The Financial Express

Another view from SBI Securities suggests the combination of brand strength, diversified lending portfolio, and a strong parent (Tata Group) back the IPO’s potential. The Financial Express

Risks & What Could Go Wrong

That said, no IPO is without risks:

• A large part of the offering is OFS (existing shareholders exiting), which doesn’t bring fresh funds to the business and could limit growth leverage.

• Credit risk looms for NBFCs, especially during economic stress or rate hikes.

• The company competes with many well-established banks and NBFCs.

• Market volatility or negative macro news (interest rates, inflation, global cues) could dampen listing.

Should You Apply or Skip?

Investors considering Tata Capital’s IPO should weigh following:

• For long-term investors, the Tata brand, diversified exposure, and relatively reasonable valuation make it an attractive play in the financial sector.

• For short-term listing gain seekers, the moderate GMP suggests upside but not explosive returns; gains could be limited if market sentiment softens on listing day.

• Risk tolerance matters: If you prefer safer, tried-and-tested large-cap names, this IPO may carry more uncertainty.

• Don’t rely solely on GMP — validate with fundamentals, comparables, and your own portfolio goals.

Given the cues, in a balanced view: applying with a partial allocation (not all your capital) might be prudent for investors willing to take medium risk.

What Comes Next

The subscription window runs October 6 to 8. The Economic Times+3mint+3The Financial Express+3 Allotment is expected on October 9, refunds on October 10, and listing likely on October 13. The Times of India+4The Financial Express+4IPO Ji+4

Post-listing, the stock’s performance will depend heavily on market sentiment, broader IPO markets, and how well Tata Capital executes growth and asset quality. Investors and analysts will closely monitor quarterly earnings, loan book growth, and delinquency metrics.