Tata Capital IPO Day 3 GMP: India's biggest IPO in 2025 closes with 2x subscription, check latest GMP

Ahead of listing, the unlisted shares of the company were trading with 0.6% GMP over the IPO price, according to data on Investorgain. This is lower than the 1.84% GMP quoted by the site earlier during the day.

According to IPO Watch, the unlisted shares of the company were trading with 2.14% GMP over the IPO price.

Tata Capital IPO has now closed for public bidding, after being subscribed 1.95 times. Non Institutional Investors (NII) and Qualified Institutional Buyers (QIB) have booked their reserved portions 198% and 342% respectively. Retail investors meanwhile have booked 110% of their reserved portion.

• Qualified Institutional Buyers (QIB) – 3.42 times
• Non Institutional Investors (NII) – 1.98 times
• Retail investors – 1.10 times
• Employees – 2.92 times
  TOTAL – 1.95 times

Tata Capital IPO has been subscribed 194% so far on its third and final day of public bidding so far. Non Institutional Investors (NII) and Qualified Institutional Buyers (QIB) have booked their reserved portions 198% and 342% respectively. Retail investors meanwhile have booked 107% of their reserved portion.

• Qualified Institutional Buyers (QIB) – 3.42 times
• Non Institutional Investors (NII) – 1.98 times
• Retail investors – 1.07 times
• Employees – 2.86 times

TOTAL – 1.94 times

"Tata capital is expected to list slightly above the higher end of its price band close to Rs 326 per share. This will give it a P/E of close to 34 which will similar to Bajaj finance which has one of the highest valuation in NBFC space...We believe that Tata capital is getting the higher premium due to the Tata brand and it being one the key NBFCs which has show consistent growth while improving operational metrics," said Shravan Shetty, Managing Director, Primus Partners.

Tata Capital IPO has been subscribed 148% so far on its third and final day of public bidding so far. Non Institutional Investors (NII) and Qualified Institutional Buyers (QIB) have booked their reserved portions 149% and 241% respectively. Retail investors meanwhile have booked 94% of their reserved portion.

• Qualified Institutional Buyers (QIB) – 2.41 times
• Non Institutional Investors (NII) – 1.49 times
• Retail investors – 0.94 times
• Employees – 2.60 times

TOTAL – 1.48 times

Choice Broking also advised investors to subscribe to the issue for the long term, noting that the strong brand positioning is the only positive, while the high valuations remain a concern.

Ahead of listing, the unlisted shares of the company were trading with 2.15% GMP over the IPO price, according to data on Investorgain. This is higher than the 1.84% GMP quoted by the site earlier during the day.

According to IPO Watch, the unlisted shares of the company were trading with 2.14% GMP over the IPO price.

Tata Capital IPO got fully subscribed on its third and final day of public bidding. Here are the latest subscription numbers:

• Qualified Institutional Buyers (QIB) – 1.18 times
• Non Institutional Investors (NII) – 1.10 times
• Retail investors – 0.84 times
• Employees – 2.32 times
  TOTAL – 1.00 time

• QIB – 0.96 times
• NII - 1.07 times
• Retail investors– 0.83 times
• Employee - 2.31 times
• TOTAL – 0.92 times

While the valuation seems to be strong in tune with large NBFCs, the lower grey market estimates indicate cautious investor optimism, said Siddharth Maurya, Founder & Managing Director, Vibhavangal Anukulakara. “With a diversified lending book covering consumer and MSME finance and with robust risk management in place, Tata Capital shows good fundamentals. Though the issue is priced fully, it offers a strategic opportunity to long-term investors to invest in a well-established financial institution, well-placed for long-term growth in India's growing credit market,” he added.

Tata Capital IPO has been subscribed 88% so far on its third and final day of public bidding so far. Non Institutional Investors (NII) and Qualified Institutional Buyers (QIB) have booked their reserved portions 96 percent each. Retail investors meanwhile have booked 79% of their reserved portion.

• Qualified Institutional Buyers (QIB) - 0.96 times
• Non Institutional Investors (NII) - 0.96 times
• Retail investors - 0.79 times
• Employees - 2.23 times

TOTAL - 0.88 times

Ahead of listing, the unlisted shares of the company were trading with 1.84% GMP over the IPO price, according to data on Investorgain. This is lower than the 4% GMP quoted by the site earlier during the day the IPO opened for public bidding.

According to IPO Watch, the unlisted shares of the company were trading with 2.14% GMP over the IPO price.

The 15,512-crore IPO of Tata Capital has reopened for public bidding on its third and final day of bidding.  The price band for the IPO has been set at Rs 310-326. The allotments are likely to be finalized by October 9, and the shares are scheduled to be listed on stock exchanges BSE and NSE on October 13.

Investors can bid for a minimum of 46 shares, requiring an investment of Rs 14,996 at the upper price band, and in multiples thereafter.

According to SBI Securities, at the upper price band of Rs 326, Tata Capital's IPO is valued at a post-issue P/BV multiple of 3.4x. The company leverages the strength of its Tata Group parentage, a diversified loan portfolio, strong risk management practices, and a pan-India omni-channel network, making it one of the most reliable and scalable NBFCs in India.

Impact of TMFL merger

The recent merger with TMFL enhances Tata Capital's footprint in vehicle finance, adding both scale and product diversification. While RoE and RoA dipped during FY25 and 1QFY26 due to post-merger losses from TMFL, profitability is expected to improve as the TMFL business becomes profitable over time.

Tata Capital's IPO is priced between Rs 310 and Rs 326, comprising a Rs 6,846 crore fresh issue alongside an Rs 8,666 crore offer-for-sale (OFS) by Tata Sons. Analysts highlight the company's strong fundamentals, diversified operations, and the credibility of Tata Group backing. However, early grey market premium (GMP) trends indicate that investors may take a cautious approach to listing gains.

The NBFC maintains healthy asset quality and is focused on expanding its digital lending capabilities, positioning it to capitalize on India's increasing credit demand.

Tata Capital enjoys a robust presence across retail and SME segments, providing a solid foundation for sustained growth.

Leading brokerages, including Canara Bank Securities, Anand Rathi, and BP Wealth, have endorsed Tata Capital as a strong long-term investment opportunity.

The subdued grey market premium (GMP) for the Tata Capital IPO is largely attributed to a crowded primary market. Consecutive large offerings, including LG Electronics' IPO, have stretched investor liquidity and dampened speculative trading. According to Prashanth Tapse of Mehta Equities, "Investors are becoming more selective as Tata Capital competes for attention with other high-growth IPOs."

Tata Capital aims to sustain its growth momentum by broadening its product portfolio and deepening market penetration. The company is also focused on strengthening its risk management framework to maintain superior asset quality. Leveraging technology and data analytics across the lending value chain presents additional opportunities to improve operational efficiency.

The company operates in a highly competitive financial services market, facing pressure from established and emerging peers. Its performance is also influenced by seasonal factors, with demand linked to monsoon patterns. Moreover, fluctuations in raw material prices could indirectly affect overall business performance.

Tata Capital faces exposure to interest rate risks arising from mismatches between its fixed and floating rate assets and liabilities, which could impact margins and financial stability. Additionally, a high share of unsecured loans-around 20% of its gross loan book-poses elevated credit risk.

Technical and momentum indicators remained favourable for bulls, with a continuation of the higher top–higher bottom formation. Hence, if the index decisively surpasses this hurdle, the 25,400–25,500 levels are the ones to watch, provided the 25,000–24,900 zone holds as support, according to experts. (Read More)

Analysts believe the pricing of Tata Capital's IPO offers adequate headroom for long-term investors. "Considering market sentiment, Tata Capital's management has sensibly priced the IPO slightly below the industry average, leaving decent headroom for a healthy listing pop," said Prashanth Tapse, Senior VP (Research), Mehta Equities.

The Tata Capital IPO is priced in the range of Rs 310-Rs 326 per share. The lot size for retail investors is 46 shares, requiring a minimum investment of Rs 14,996 at the upper end of the price band. For small non-institutional investors (sNIIs), the minimum application size is 14 lots, or 644 shares, amounting to Rs 2,09,944. Meanwhile, big non-institutional investors (bNIIs) are required to bid for at least 67 lots, or 3,082 shares, translating to a minimum investment of Rs 10,04,732.

The grey market premium (GMP) remains subdued at around 2% above the issue price, indicating cautious investor sentiment despite Tata Capital's strong brand pedigree and diversified financial portfolio.

The IPO, which opened on Monday, comprises a fresh issue of Rs 6,846 crore and an offer-for-sale (OFS) of Rs 8,666 crore by promoter Tata Sons, which currently holds a 95.6% stake in the company.

As of Day 2, the issue was subscribed 0.75 times overall, with Qualified Institutional Buyers (QIBs) bidding for 0.86 times, Non-Institutional Investors (NIIs) for 0.76 times, and Retail Individual Investors (RIIs) for 0.67 times their respective quotas. The employee segment continued to show the highest enthusiasm, with subscriptions reaching 1.95 times.

Today is the last day to subscribe to Tata Capital's Rs 15,512-crore initial public offering (IPO) - the largest public issue of the year - which has witnessed a steady yet moderate response from investors so far.