The initial public offer of Tata Capital Ltd was subscribed 75 per cent on the second day of bidding on Tuesday, October 7, according to PTI citing NSE data. The Rs 15,512 crore issue received bids for 24,96,33,260 shares against 33,34,36,996 shares on offer. Among investor categories, Qualified Institutional Buyers subscribed 86%, Non-Institutional Investors 76% and Retail Individual Investors 67%, while the employee quota was oversubscribed 1.95 times.
The IPO, which closes on Wednesday, October 8, carries a price band of Rs 310-326 per share — valuing the NBFC at about Rs 1.38 lakh crore at the top end. The 47.58-crore-share issue combines a fresh issue of 21 crore shares with an Offer for Sale of 26.58 crore shares, through which promoter Tata Sons (currently holding 88.6%) will offload 23 crore shares and the International Finance Corporation (1.8% holder) will sell 3.58 crore shares. Proceeds from the fresh issue will strengthen Tata Capital's Tier-1 capital base for onward lending. The anchor book set the tone on October 3, when the company raised Rs 4,642 crore from 68 domestic and global institutional investors, with demand nearly five times the allocated amount.
The response is steady rather than euphoric: the grey market premium hovers around 3.7% above the issue price, per ET — a sign of cautious optimism for India's fourth-largest IPO, being undertaken in line with the RBI's listing mandate for upper-layer NBFCs. With employee bids at 1.95x and retail interest building through the day, the final day of bidding on October 8 will decide whether this becomes a fully-subscribed blockbuster or a measured, institution-led listing — Tata Group's second public debut after Tata Technologies in November 2023.
Why it matters for founders
Tata Capital's IPO is a live test of India's public-market appetite for financial-services scale — the segment most late-stage fintechs and NBFCs will eventually list into. A 75% day-2 subscription with institutions leading shows the window is open, but selective: profitability, capital adequacy and group backing matter more than narrative. If you're building a lending or fintech business, this is the valuation benchmark your Series C investors are quietly using.