Tata Capital’s IPO has seen a subscription rate of 194% as it enters its third and final day of public bidding. Non-Institutional Investors (NII) and Qualified Institutional Buyers (QIB) have subscribed 198% and 342% of their allotted quotas, respectively, while retail investors have booked 107% of their reserved shares.
Shravan Shetty, Managing Director of Primus Partners, expects Tata Capital to list slightly above the top end of its price band, around ₹326 per share, giving it a price-to-earnings ratio near 34—comparable to Bajaj Finance, one of the highest valued NBFCs. Shetty attributes Tata Capital’s premium to the strong Tata brand and its consistent growth with improving operational metrics.
Choice Broking recommends investors subscribe for the long term, citing Tata’s strong brand but cautioning about its high valuations. Brokerages like Canara Bank Securities, Anand Rathi, and BP Wealth also endorse Tata Capital as a solid long-term investment.
The company plans to maintain growth by expanding its product range, deepening market reach, and strengthening risk management. Analysts see potential upside as the IPO is sensibly priced just below industry averages, offering scope for a healthy listing gain. The IPO includes a ₹6,846 crore fresh issue and an ₹8,666 crore offer-for-sale by Tata Sons, which holds a 95.6% stake. Today is the last day to subscribe to this ₹15,512 crore IPO, the largest this year.
