Tata Capital shares made a muted debut on the stock exchanges on Monday, following the conclusion of its initial public offering (IPO) last week, which was subscribed 1.95 times. Shares of the non-banking financial company were listed at Rs 330 apiece on the National Stock Exchange (NSE), reflecting a modest premium of 1.23% over the IPO price of Rs 326.
On the Bombay Stock Exchange (BSE), the shares were also listed at Rs 330, giving the company a market capitalisation of Rs 1,39,783 crore. The IPO had a price band of Rs 310–Rs 326 per share.
The highly anticipated issue, India’s largest IPO of 2025 so far at Rs 15,512 crore, received a lukewarm response amid ongoing boardroom turmoil at the Tata Group and a sharp decline in Tata Group stocks this year.
According to BSE data, the offering received bids for 65,11,26,136 shares against 33,34,36,996 shares on offer, translating into an overall subscription of 1.95 times.
Among investor categories, the Qualified Institutional Buyers (QIB) segment was the most active, with a subscription of 3.42 times. The Non-Institutional Investors (NIIs) segment was subscribed 1.98 times, while the retail portion saw a subscription of 1.10 times. The employee quota received 2.92 times the number of bids.
Brokerage firm JM Financial initiated coverage on Tata Capital (TCL) with an "Add" rating and a target price of Rs 360, valuing the stock at 2.9x FY27E price-to-book.
Emkay Global Financial Services also initiated coverage with an "Add" rating and a September 2026 target price of Rs 360, implying a potential upside of around 10% over the IPO price. The valuation is based on a FY27E price-to-book multiple of 2.8x.
According to Avinash Singh, Senior Research Analyst at Emkay Global, the positive outlook is driven by several structural strengths, including Tata Group’s strong parentage, a diversified product portfolio, and operational efficiencies that are expected to support sustained profitability.
“Tata Capital’s AAA credit rating and access to abundant, low-cost debt make it well-positioned to emerge as a meaningful NBFC lender. Its diversified product mix and pan-India presence help mitigate concentration risks, while improving credit costs and operating leverage should drive steady improvements in RoA and RoE to 2.2% and 15.4%, respectively, by FY28E,” Singh said.