Tata Capital shares settled 1.56 percent higher from its IPO price on the debut day at Rs 331.10 per share on the NSE on Monday. The stock finished the trade 0.33 percent higher from its open price.
The stock made a tepid stock market debut on the stock exchanges over its initial public offering (IPO) price, following a 1.95 times subscription between October 6-8 in the primary market.
Shares of non-banking financial company Tata Capital Ltd were listed at Rs 330 per share on the National Stock Exchange (NSE), a premium of 1.23 percent over its IPO price. The 15,512-crore issue had a price band of Rs 310-326 per share.
On the BSE, the shares were listed at Rs 330 per share, a premium of 1.23 percent. The company's market capitalization on the debut day stood at Rs 1,40,250.47-crore.
Tata Capital IPO share listing was better than the expectations in the grey market, which had estimated a flat debut on the stock exchanges.
Tata Capital share listing: Should you buy, sell or hold?
The brokerage JM Financial has initiated the coverage on Tata Capital with 'Add' recommendation and a price target of Rs 360 per share. The analysts said the company will benefit from Tata group's legacy and says it is well-placed in terms of cost of funds. JM Financial also expects Tata Capital's credit costs to gradually decline from H2 FY26 with asset quality improving.
Prashanth Tapse, Sr. VP Research at Research Analyst, Mehta Equities, noted "being Tata Capital’s strong brand equity under the Tata Group, its diversified business model, and robust presence across retail, corporate, and housing finance segments make it a compelling long-term play in India’s expanding financial services landscape."
"With India’s ongoing credit penetration, economic formalisation, and rising demand for both consumer and business financing, Tata Capital provides investors a credible and scalable proxy to participate in the broader NBFC growth cycle. We therefore recommend -the allotted Investors to hold for the long term, given the company’s structural strengths and growth potential, while acknowledging short-term market risks, while the non-allotted investors can adopt a ‘Wait and Watch’ approach — monitor the stock post-listing, and consider accumulating on any meaningful dip," he added.
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd., added "Tata Capital, a leading NBFC, enjoys a diversified presence across retail and corporate lending, wealth management, and other financial services. The company’s fundamentals remain sound with steady growth and strong parentage, but valuations were seen as fair, leaving limited room for listing-day excitement. Going ahead, investors may consider booking partial profits near listing levels while holding some shares for the long term, as the company’s growth prospects remain attractive in India’s expanding financial services sector. A stop-loss around Rs 300 is advisable to protect downside risk in the near term."
With a portfolio of more than 25 lending products, the company caters to a diverse customer base, including salaried and self-employed individuals, entrepreneurs, small businesses, SMEs, and corporates.
In addition to lending, Tata Capital distributes third-party products such as insurance and credit cards, offers wealth management services, and acts as a sponsor and investment manager to private equity funds.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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