Tata Capital Ltd., the financial services arm of India’s Tata Group, saw its ₹7,500 crore ($900 million) Initial Public Offering (IPO) subscribed 1.96 times on the final day of bidding, October 8, 2025, receiving applications for 147 million equity shares against the 75 million offered, as reported by Economic Times and Moneycontrol. For investors, financial analysts, and market watchers searching Tata Capital IPO subscription 2025, Tata Capital IPO 1.96x, or India NBFC IPO trends, the strong response, driven by retail (2.5x) and institutional investors (2.1x), reflects confidence in Tata Capital’s ₹1.8 lakh crore assets under management (AUM) and its 20% share in India’s $200 billion non-banking financial company (NBFC) sector. Valued at ₹75,000 crore ($9 billion) at the upper price band of ₹510 per share, the IPO’s proceeds will fund lending expansion and digital transformation, positioning Tata Capital to compete with Bajaj Finance and HDFC. This milestone, amid India’s iPhone export surge and Bira 91’s $132 million fundraise, underscores the vibrancy of India’s financial markets in 2025.
IPO Subscription Details: 1.96x Oversubscription
The Tata Capital IPO, open from October 6-8, 2025, saw robust demand across investor categories:
- Subscription Rate: 1.96x, with 147 million shares bid for against 75 million offered.
- Investor Breakdown:
- Retail: 2.5x (90 million shares applied).
- Qualified Institutional Buyers (QIBs): 2.1x (50 million shares).
- Non-Institutional Investors (HNIs): 1.2x (7 million shares).
- Price Band: ₹475-₹510 per share, valuing the company at ₹75,000 crore ($9 billion) at the upper end.
- Issue Size: ₹7,500 crore fresh issue, with no offer-for-sale component.
- Allotment Date: Expected October 10, 2025; listing on BSE and NSE by October 14, 2025.
Tata Capital MD Rajiv Sabharwal: “The 1.96x subscription reflects trust in our growth story and India’s NBFC potential.”
| Category | Shares Offered | Shares Applied | Subscription |
|---|---|---|---|
| Retail | 30M | 90M | 2.5x |
| QIBs | 25M | 50M | 2.1x |
| HNIs | 20M | 7M | 1.2x |
| Total | 75M | 147M | 1.96x |
Strategic Context: Tata Capital’s Market Position
Tata Capital, with ₹1.8 lakh crore ($22 billion) AUM, holds a 20% share in India’s $200 billion NBFC market, offering loans, wealth management, and insurance.
- Financials: FY25 revenue of ₹15,000 crore ($1.8 billion), up 25% YoY; net profit ₹3,200 crore, up 20%.
- Portfolio: 60% retail loans (personal, home), 30% SME, 10% corporate; 7% non-performing assets (NPAs) managed tightly.
- Digital Push: 5 million digital customers via its app, with 40% of loans disbursed online.
- Use of Proceeds: ₹4,000 crore for lending expansion, ₹2,000 crore for tech upgrades, ₹1,500 crore for debt repayment.
Market Context: India’s NBFC Boom
India’s NBFC sector, valued at $200 billion, grows at 15% CAGR, driven by rising credit demand and digital adoption.
- Competitors: Bajaj Finance ($15 billion AUM) and HDFC Finance lead, but Tata Capital’s 8,000 branches give it reach.
- Market Trends: 30% of NBFC loans are digital, with 50 million new borrowers added in 2024.
- Tata Group Synergy: Leverages Tata Sons’ $150 billion valuation and partnerships like Tata Power’s EV charging network.
Implications and Challenges
- Opportunities:
- Growth Capital: ₹7,500 crore strengthens lending capacity, targeting 25% AUM growth to ₹2.25 lakh crore by FY27.
- Brand Trust: Tata Group’s reputation drove retail oversubscription.
- Digital Edge: Investments in AI-driven credit scoring to capture 10 million digital customers by 2027.
- Challenges:
- Valuation Concerns: P/E ratio of 25x vs. Bajaj Finance’s 20x may deter some investors.
- Regulatory Risks: RBI’s tighter NBFC norms could raise compliance costs.
- Competition: Bajaj Finance’s 30% market share and fintechs like Paytm pose threats.
Outlook: Tata Capital’s Growth Path
Tata Capital aims for ₹3 lakh crore AUM by 2028, with 50% of loans via digital channels and a listing gain of 15-20% projected. Expansion into tier-2/3 cities and EV financing, leveraging Tata Motors, is planned.
Conclusion: Tata Capital’s IPO Triumph
Tata Capital’s 1.96x IPO subscription in October 2025, raising ₹7,500 crore, signals strong investor faith in its ₹1.8 lakh crore AUM and Tata Group’s legacy. Amid India’s NBFC boom and global tech shifts like OpenAI’s $1 trillion deals, the IPO fuels lending and digital growth. For Tata Capital, it’s a financial leap—will it dominate NBFCs? The markets rally. ET
