The announcement of the Tata Capital IPO price band has created quite a flurry in the unlisted market. After HDB Financial and NSDL, this Rs 15,000 crore issue becomes the third big ticket IPO with a price band set at a steep discount to the unlisted share price. The issue price band has been fixed at Rs 310-326 per share.

The unlisted shares of IPO-bound Tata Capital have been trending lower after the HDB and NSDL issue price announcement in anticipation. However, it is still significantly higher. The all-time low in the unlisted space is around Rs 450 a share. However, even at the highest end of the IPO price band, it is at a 27% discount to the lowest levels that the unlisted shares have touched. The all-time high for unlisted shares of Tata Capital is at Rs 1,100 per share.

Tata Capital IPO: The big unlisted share market disappointment

Though unlisted market observers pointed out that the price is based on the business fundamentals, investors who have bought the Tata Capitak shares in the unlisted market could be staring at significant losses. Market analyst, Ambareesh Baliga pointed out that the “huge discount of Tata Capital IPO to the unlisted price will surely have an adverse effect on the market of unlisted stocks especially related to the BFSI space – this is the 3rd IPO after HDB and NSDL to be issued at a discount to the unlisted price.”

Baliga however, reiterated that “though there is no obligation for the promoters/management of the IPO company to take the unlisted price into consideration for the IPO price, but such huge discounts will take the wind off the grey market. Would be interesting to see transactions in Groww, Incred, NSE over the next few weeks.”

Tata Capital IPO: Pricing makes valuation attractive

Though the shares have seen over 30% correction in the last two months, it is still significantly higher than the issue price. After the company announced the rights issue, many analysts had expected a competitive IPO price band but the announcement surorised most. According to marjet veteran, Deven Choksey, “This is at 10% discount to my projected price of 350. It is at the last right issue price of 324. The price places the offering at attractive valuation of less than 3.5x , P / ABV. I feel that the valuations are in line with fast growing retail NBFC sector in listed marketers.”

Tata Capital IPO: Business fundamentals, IPO details

The Rs 15,511.87 crore IPO is set to be launched on October 6. A combination of OFS and fresh issuance, this is one of the most anticipated NBFC IPOs after HDB Financial. A latest Crisil report indicated that Tata Capital is the third largest diversified NBFC in India with a gross loan book of Rs. 2,265.5 billion as of March 2025. Crisil has called the NBFC as “one of the fastest growing NBFC in terms of gross loans among large diversified NBFCs.”

Tata Capital’s focus is on cleantech, EVs, and SMEs aligns with policy pushes. Deven Choksey highlighted that “it is a solid long-term play—backed by the Tata Group’s AAA-rated ecosystem, diversified AUM. It’s not a flashy fintech disruptor like Paytm but a reliable NBFC with low-cost funding and subsidiaries like Tata Capital Housing Finance enhancing reach.”