Tata Capital shares rise 2% over IPO price after India's biggest IPO of 2025

Tata Capital's share price rose as much as 2.08% over the IPO price of ₹326 to ₹332.80 apiece on the BSE even as the benchmark Sensex traded 0.25% lower.

Tata Capital Ltd. has had a muted listing today, after raising as much as $1.75 billion in India’s biggest IPO of 2025.

The Tata Capital IPO is the first initial public offering from the House of Tata since Tata Technologies' nearly two years ago. (Reuters)

On Monday (13 October 2025), the Tata Capital share price rose as much as 2.08% over and above the IPO price of ₹326 to ₹332.80 apiece on the BSE even as the benchmark Sensex traded 0.25% lower.

“The company is positioned for long-term growth, backed by a strong brand and a widening network of branches across India,” Indian brokerage Choice said in a note. But given that some of its measures like return on assets are lower than those of peers, the broker only recommended the stock as a long-term investment.

Tata Capital, the non-banking financial company of India’s oldest and most reputed conglomerate, kicks off what is going to be a big week for debuts in the country as the shares of LG Electronics India Ltd. are scheduled to start trading on Tuesday.

Their performance will be closely watched as scores of Indian companies prepare to go public and raise billions of dollars in India’s increasingly hot IPO market.

Tata Capital IPO

Earlier, the Tata Capital IPO got sold out only on the third day of the share sale, as qualified institutional buyers pushed it over the finish line. Investors bid for 65.19 crore shares as against 33.34 crore shares on offer in the Tata Capital IPO—that equates to a subscription of 1.96 times.

The demand was led by qualified institutional buyers, who picked up 3.42 times shares reserved for them in the IPO. The portions reserved for non-institutional investors was subscribed 1.98 times while retail investors and employees picked up 1.10 and 2.92 times shares earmarked for them.

The Tata Capital IPO was subscribed 50% on the first day and 75% on the second day. The company raised ₹4,642 crore from anchor investors on Friday, 3 October 2025.

At the top end of the price band, Tata Capital shares would trade at about 3.4 times book value, according to SBI Securities. That’s cheaper than listed peers such as Bajaj Finance Ltd. and HDB Financial Services Ltd., according to data compiled by Bloomberg.

IPOs in India

Tata Capital’s listing comes amid India’s growing status as a global IPO hub, powered by deep domestic liquidity and an expanding retail investor base.

India has become one of the busiest IPO markets worldwide over the past two years, drawing global investors eager to tap its fast-growing consumer economy. October is shaping up to be India’s biggest month ever for companies going public—with proceeds expected to top $5 billion.

More broadly, India has emerged as the world’s fourth-largest IPO market this year, with proceeds exceeding $11 billion in the first nine months of the year, according to data compiled by Bloomberg. That’s after last year’s record of almost $21 billion.