India’s most-awaited IPO of Tata Group is finally here. Bidding for the Tata Capital, the financial arm of the Tata Group begins today. This Rs 15,511.87 crore public offer is the biggest IPO of the year so far, surpassing HDB Financial’s Rs 12,500 crore issue.
As the buzz builds around this IPO, analysts are closely weighing whether it can deliver long-term value once it lists. Let’s take a look at what the brokerages are saying –
Tata Capital IPO, biggest issue of 2025: Key details
Tata Capital’s IPO is a mix of a fresh issue worth Rs 6,846 crore and an Offer for Sale (OFS) of Rs 8,665 crore by promoters Tata Sons and International Finance Corporation (IFC).
Breaking down the investors category, retail investors can bid for one lot of 46 shares requiring a minimum investment of around Rs 14,996 with 35% of the issue reserved for them and half set aside for institutional buyers.
Ahead of the main issue, Tata Capital already raised Rs 4,642 crore from 68 anchor investors, including LIC, Goldman Sachs, Nomura, and Morgan Stanley.
How is the market assessing Tata Capital IPO
Brokerages say the Tata IPO has been priced at a premium but not an unreasonable one.
According to Deven Choksey Research, “Tata Capital’s initial issue is priced at 4.1x TTM P/B, compared to peer average of 3.7x. While its valuation looks fair, its returns appear slightly lower compared to other listed NBFCs. We assign a ‘Neutral’ rating to the issue.”
The firm believes the company’s strong brand and omni-channel presence could help it scale its loan book faster, but lower return ratios remain a watchpoint.
Brokerage split: Long-term play or fully priced?
Some brokerages are viewing Tata Capital as a steady, long-term story rather than a short-term bet.
Anand Rathi Research highlighted that the company’s focus on digital risk management and diversified lending could help lower its credit costs. “At the upper price band, the company is valued at a P/E of 32.3x and P/B of 3.5x based on FY25 earnings. We believe that the IPO is fully priced and recommend a ‘Subscribe – Long Term’ rating,” the brokerage said.
Canara Bank Securities echoed a similar view, calling the IPO “in line with peers.” It noted that post-merger integration with Tata Motors Finance should stabilise, backed by strong AAA ratings and solid funding. “Macro tailwinds like India’s economic growth and digital adoption favor the business,” it added, while cautioning about rate volatility and regulatory risks.
‘Subscribe for long-term’: Mehta Equities bullish on Tata Capital
Among the bullish voices, Mehta Equities sees the IPO as a compelling opportunity to play India’s growing credit market under a trusted brand.
“We believe Tata Capital Ltd IPO brings investors an opportunity to invest in India’s financial services space, combining scale, diversification, and strong brand credibility under the Tata Group,” it said.
The firm noted Tata Capital’s strong financial growth, with revenues rising 33.4% in FY2024 and 55.8% in FY2025, while profits also inched higher. It estimates the IPO’s valuation at a P/B of 3.2x – “reasonably priced compared to ~4x average of peers,” leaving room for potential listing gains and sustained growth.
“With India’s rising credit penetration, formalisation of the economy, and growing demand for consumer and business finance, Tata Capital offers investors a credible proxy to participate in the broader NBFC growth cycle,” Mehta Equities added, recommending a ‘Subscribe – Long Term’ call.