Tata Capital on Monday fixed a price band of Rs 310–326 per share for its upcoming initial public offering (IPO), which was over 55% below its prevailing unlisted market price of Rs 735-765 per share. The IPO price of the retail lending NBFC is 5-10% below the rights issue price of Rs 343 per share issued in July 2025.
The Rs 15,512 crore IPO of Tata Capital opens for subscription on October 6 and closes on October 8. Since June 2025, the stock price of Tata Capital has been languishing in the unlisted space, quoting at Rs 1,075 in early June 2025. The stock price has lost nearly one-third (32%) of its value post-rights issue priced at Rs 343 in July 2025 and due to overall weakness in the equity market.
What do market analysts say?
Market analyst Arun Kejriwal said, “Investors who bought in the unlisted space have burnt their hands, but they are living on the hope that they will make money post-listing as the stock is from the house of Tata.” On Monday, the Tata Capital IPO’s grey market price (GMP) was quoted at Rs 28, estimating the listing price at Rs 354 per share, up 8.6% from the IPO price of Rs 326 per share.
“The IPO price could have been set higher, but the company decided to lower the price band keeping retail investors in mind,” said V Jayasankar, managing director & member of the Board at Kotak Investment Banking, indicating handsome listing gains left on the table for investors.
However, at the upper price band, the price-to-earnings (PE) ratio of Tata Capital is at 35, at par with Bajaj Finance, which is nearly twice the size of Tata Capital in terms of gross loan book. As of FY25, the gross loan book of Tata Capital stood at Rs 2.33 lakh crore, compared to Bajaj Finance at Rs 4.14 lakh crore. In terms of revenue, Bajaj Finance (for FY25 Rs 69,684 crore) is nearly 2.5 times higher than Tata Capital (Rs 28,313 crore).
What is the estimated anchor book size?
For Tata Capital, at the upper price band, the fresh issue will be around Rs 6,846 crore, while the offer for sale will be around Rs 8,665.87 crore. The anchor book size will be approximately Rs 4,642 crore, and the company’s market capitalisation will be about Rs 1.38 lakh crore.
Interestingly, Tata Capital’s stock price in the unlisted space mirrors the trend of other unlisted shares where investors had faced losses. Both HDB Financial Services and National Securities Depository (NSDL) quoted 37-41% below their unlisted stock price. HDB Financial Service’s IPO price was Rs 740 per share, while the stock price in the unlisted market was quoted at Rs 1,275 per share. Similarly, for NSDL, the unlisted price was quoted at Rs 1,275, while the IPO price was Rs 800 per share.