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Tata Capital's $2.1 Billion IPO Draws Cautious Investor Interest
6 Oct
Summary
- Tata Capital's Rs 15,512-crore IPO, one of the largest of the year, opens for subscription
- Grey market premium remains subdued at around 3% above issue price
- Anchor investors, including LIC, raise Rs 4,642 crore ahead of IPO launch
On October 7, 2025, Tata Capital, the financial services arm of the Tata Group, launched its highly anticipated Rs 15,512-crore initial public offering (IPO), one of the largest public issues of the year. The IPO comprises a fresh issue of Rs 6,846 crore and an offer for sale (OFS) worth Rs 8,666 crore by the promoter, Tata Sons.
In the initial hour of bidding, the issue was subscribed 17%, with bids received for 5.58 crore shares against the total offer of 33.34 crore shares. The IPO will remain open for three days and is expected to close on October 11.
Interestingly, the grey market premium (GMP) for the Tata Capital IPO remains subdued, currently trading at around Rs 10-11 above the issue price of Rs 326 per share. This points to a potential listing price of approximately Rs 337, implying a modest premium of nearly 3%. The muted GMP reflects cautious sentiment in the grey market, indicating that significant listing gains may not be assured at this point.
Prior to the IPO launch, Tata Capital successfully raised Rs 4,642 crore from anchor investors, including prominent domestic and global funds. Life Insurance Corporation (LIC) of India emerged as the largest single investor, acquiring 2.15 crore shares valued at nearly Rs 700 crore. Other significant allocations went to major mutual funds and asset managers such as ICICI Prudential, HDFC Mutual Fund, Aditya Birla Sun Life, DSP, Axis, Kotak, and Nippon Life AMC. Among international investors, notable participants included Morgan Stanley, Goldman Sachs, Nomura, and Norway's sovereign wealth fund, the Government Pension Fund Global.
