Tata Capital IPO: GMP, Subscription Status & Key Investor Takeaways as India's Largest Public Issue Opens

Tata Capital, the financial services arm of India's leading conglomerate Tata Group, launched its blockbuster initial public offering (IPO) on October 6, 2025. With a total issue size of approximately ₹15,512 crore, the Tata Capital IPO is the biggest public issue of the year in Indian markets, and the largest since Hyundai Motor India’s ₹27,859 crore IPO in 2024[1][2][3]. The IPO will remain open for subscription till October 8, followed by share allotment on October 9 and an anticipated listing on October 13, 2025[1][3].

Investors are tracking the grey market premium (GMP) closely as a gauge of likely listing gains. As of the opening day, Tata Capital shares were commanding a modest GMP of ₹9–13 per share, translating to a premium of just over 2% over the IPO price band of ₹310–326 per share[1][2][5]. This is a notable drop from earlier indications of a 4% GMP, signaling subdued grey market sentiment compared to last week’s expectations[2][5]. The lot size for the IPO is set at 46 shares, requiring a minimum investment of ₹14,996 at the upper end[2][3]. Retail and institutional investors can bid for multiples of this lot.

The IPO comprises a fresh issue of 210 million shares (₹6,846 crore) and an offer for sale (OFS) of 265.8 million shares (₹8,665.87 crore) by promoter Tata Sons and International Finance Corporation (IFC)[3]. Proceeds from the fresh issue will be used to strengthen the company's Tier-1 capital base, ensuring compliance with RBI regulations and supporting lending expansion[1][2][3]. The company will not receive any proceeds from the OFS component, which will go to the selling shareholders[3].

On the subscription front, the issue was subscribed 0.24 times overall, with 19% subscription seen on the first day[1][2]. Before the public opening, Tata Capital raised ₹4,641.8 crore from 135 anchor investors, with LIC emerging as the largest anchor investor[2].

Market analysts and brokerages highlight Tata Capital’s strong fundamentals—bolstered by the Tata Group’s brand reputation, a diversified product portfolio, robust risk management, and stable asset quality[4]. However, some experts caution that high valuations remain a concern, and recommend subscribing to the issue only with a long-term perspective due to the company’s strong positioning in India’s competitive NBFC sector[2][4].

In summary, the Tata Capital IPO stands out as a defining moment for India’s capital markets in 2025, drawing attention from global and domestic investors alike. While the muted grey market premium and early subscription trends reflect cautious optimism, the company’s pedigree, scale, and strategic intent position it as a significant addition to India’s financial services landscape[1][2][3].