Tata Capital debuts flat on D-street; should you buy, sell or hold?

Tata Capital shares opened at ₹330 on the NSE, reflecting a premium of 1.23 per cent over the issue price of ₹326

Tata Capital IPO listing, Tata Capital share price: Shares of Tata Capital, a diversified financial services company and a subsidiary of Tata Sons, made a flat debut on Dalal Street on Monday, October 13, 2025. The company's stock opened at ₹330 on the NSE, reflecting a premium of 1.23 per cent over the issue price of ₹326. After listing, the stock fell around 0.7 per cent from the listing price to ₹327.6.

 

Similarly on the BSE, the stock opened at ₹330, up 1.23 per cent from the issue price. Post-listing, the stock was trading at ₹327, down nearly 1 per cent from the listing price. 

 

The listing price of Tata Steel was slightly above the grey market estimates. Ahead of the listing, unlisted shares of Tata Capital were trading flat at ₹326, according to sources tracking unofficial markets. 

Tata Capital: Should you buy, sell, or hold?

Domestic brokerage JM Financial has initiated coverage on Tata Capital with an 'Add' rating, citing its strong growth profile and backing by the Tata Group. The brokerage values the stock at ₹360, based on 2.9x FY27E P/B. It highlighted that around 80 per cent of the company's loan book is in secured segments, with retail finance contributing 61 per cent.

 

Tata Capital delivered a healthy AUM CAGR of 31 per cent during FY22–24 and average RoA/RoE of 2.3 per cent/18 per cent in FY23/24. However, the merger with Tata Motors Finance impacted FY25 performance, with AUM growth slowing and returns declining.

 

Going forward, JM Financial expects a recovery, projecting a 20 per cent/34 per cent AUM/PAT CAGR over FY25–27 with improved return ratios. However, the current expected valuation of 2.7x FY27 P/B (on IPO-upper band price) leaves limited upside in the near term, the brokerage said. 

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  Shivani Nyati, head of wealth at Swastika Investmart, the company’s fundamentals remain sound with steady growth and strong parentage, but valuations were seen as fair, leaving limited room for listing-day excitement. 

 

"Going ahead, investors may consider booking partial profits near listing levels while holding some shares for the long term, as the company’s growth prospects remain attractive in India’s expanding financial services sector. A stop-loss around ₹300 is advisable to protect downside risk in the near term," Nyati said.

Tata Capital IPO details

Tata Capital IPO received a muted response from investors, with the issue being oversubscribed by only 1.95 times. According to data from the National Stock Exchange (NSE), the portion reserved for Qualified institutional buyers (QIBs) was subscribed 3.42 times, the Non-institutional investors (NIIs) portion was subscribed 1.98 times, and the retail investors at 1.10 times.

 

The ₹15,511-crore mainline IPO comprises a fresh issue of 210 million equity shares and an offer for sale (OFS) of 265.8 million shares. The company set the IPO price band in the range of ₹310 to ₹326. The public issue opened for subscription on Monday, October 6, 2025, and closed on Wednesday, October 8, 2025.

 

MUFG Intime India is the registrar of the issue. Kotak Mahindra Capital Co, Axis Capital, BNP Paribas, Citigroup Global Markets India, HDFC Bank, HSBC Securities & Capital Markets (India), ICICI Securities, IIFL Capital Services, JP Morgan India, and SBI Capital Markets are the book-running lead managers. 

 

According to the red herring prospectus (RHP), the company plans to use the net fresh issue proceeds for augmentation of Tier–I capital base to meet the company’s future capital requirements, including onward lending.