Tata Capital IPO subscribed 75% on Day 2; GMP indicates muted listing

New Delhi: The initial public offer of non-banking financial company Tata Capital Ltd has been subscribed to 75 per cent on the second day of the share sale on Tuesday.

Tata Capital IPO subscription on day 2

The company's IPO received bids for 24,96,33,260 shares against 33,34,36,996 shares on offer, as per NSE data.

Among investor categories, the Qualified Institutional Buyers (QIBs) portion received 86 per cent subscription, while the quota for non-institutional investors garnered 76 per cent subscription. The category for Retail Individual Investors (RIIs) attracted 67 per cent subscription.

Tata Capital IPO GMP

According to investorgain.com, as of October 7, 2025, the Grey Market Premium (GMP) for the Tata Capital IPO was subdued at Rs 5.5 or 1.69%, over the upper end of the IPO price band of Rs 326, indicating weak or muted listing ahead.

If the current grey market trends are sustained, the shares may list flat at around Rs 331.5 per share.

The grey market is an unofficial place to trade shares ahead of listing. Market participants keep a watch on GMP to track listing gains.

Tata Capital on Friday collected Rs 4,642 crore from 68 domestic and global institutional investors, with the anchor book witnessing demand nearly five times higher than the allocated amount.

The company's Rs 15,512 crore public offering will conclude on Wednesday. The price range is Rs 310-326 per share.

At the top end of the band, the non-banking financial company (NBFC) commands a valuation of about Rs 1.38 lakh crore.

Tata Capital IPO structure

The initial public offer (IPO), comprising a total of 47.58 crore shares, includes a fresh issue of 21 crore equity shares and an Offer For Sale (OFS) of 26.58 crore shares.

Under the OFS component, Tata Sons will offload 23 crore shares, while the International Finance Corporation (IFC) will divest 3.58 crore shares.

Currently, Tata Sons holds an 88.6 per cent stake in Tata Capital, while IFC owns a 1.8 per cent holding.

Proceeds from the IPO will be used to strengthen the company's Tier-1 capital base, supporting future capital requirements, including onward lending.

This will mark Tata Group's second public listing in recent years, following the debut of Tata Technologies in November 2023.

The IPO is being undertaken in line with the Reserve Bank of India's (RBI) listing mandate for upper-layer NBFCs, which requires them to be listed within three years of classification.

Tata Capital was designated as an upper-layer NBFC in September 2022.

With a portfolio of more than 25 lending products, the company caters to a diverse customer base, including salaried and self-employed individuals, entrepreneurs, small businesses, SMEs, and corporates.

In addition to lending, Tata Capital distributes third-party products such as insurance and credit cards, offers wealth management services, and acts as a sponsor and investment manager to private equity funds.

Tata Capital is expected to make its stock market debut on October 13.