The issue price of Tata Capital IPO has been fixed at Rs 326 to 326.
The upcoming IPO of the Tata Group is the largest and awaited issue of Tata Capital, 2025. If investors find it easy to invest in this IPO in view of the strong performance of Tata and other shares of the group. If investors have to go on the basis of strong performance of Tata and second stock of the group, then there is no problem in investing in IPO. About two years ago, Tata Technologies came to the market in November 2023, and listed at 140 per cent premium from its issue price. It was the first IPO of the Tata Group in almost two decades, and the enthusiasm of the people was at its peak. But this fast was not retained.
Two years later, Tata Tech is trading below about 43 per cent below its listed price, showing how badly the sharp corrections that occur after the listing can also affect big names. Now, all eyes are on Tata Service company Tata Capital, which is opening its IPO of Rs 15,512 crore on 6 October. With a price band of Rs 310-326, this offer includes a new issue of Rs 6,846 crore and OFS of Rs 8,666 crore by Tata Sons and IFC.
No less than financial powerhouse
Tata Capital is the third largest NBFC in India, with a gross loan book of Rs 2.33 lakh crore by June 2025. Its loan is tilted towards mixed retail and SME Boroors, which holds more than 87 per cent in the total loan book. The company has 1,516 branches and further enhances its reach with 30,000 DSA, 400 OEM alliances and 60 digital partners. From Tata Capital Personal Loan and Home Loan to Auto, SME and Infra Loans, more than 25 loan solutions are provided. After merger with Tata Motors Finance, the company has further expanded in auto finance.
Strength and stability
With the support of the Tata brand, the company has the highest credit rating – ‘AAA/Stable’ from the world’s largest agencies. Financially, the company earned an interest of Rs 25,720 crore in FY 2025, which was Rs 16,366 crore in FY 2024. The net profit increased to Rs 3,655 crore as compared to Rs 3,327 crore in the previous year. The net interest margin increased to 5.6 per cent, while the return ratio decreased after the merger, but it remains healthy.
There is risk and competition also
Despite its size, Tata Capital is facing strict competition from veteran NBFC companies like Bajaj Finance and Shriram Finance. Its return ratio is less than the competitors – the return on equity (ROE) of Bajaj Finance is 19.2 per cent while Tata Capital is 12.6 per cent. Analysts also point out the risks associated with high risk, potential asset-domination imbalance and sensitivity to the interest rate cycles in unsafe loans (20 per cent of the bookkeeping).
Should investors bet?
Knowledgeable remains positive but restrained. SBI Securities says that the strength of Tata Capital’s parentage, diversified portfolio and omni-channel distribution make it long-term stable. However, experts say that the return will depend on how the company integrates its auto finance business and maintains profitable between competition. For investors, the Tata brand gives a relaxed. But as Tata Technologies showed, a blockbuster listing does not always ensure permanent benefits. The IPO of Tata Capital may not perform brilliantly like Tata Tech’s early performance, but with its scale, brand trust and better basic principles, it establishes itself as a stable and long -term bet.