Tata Capital Makes a Modest Debut on Dalal Street, Lists at 1% Premium

Tata Capital, one of the largest IPOs of 2025, saw a subdued debut on the stock market, listing at Rs 330 on both BSE and NSE, just a 1% premium over its issue price of Rs 326. Investors had high expectations, but the stock’s muted start signals cautious sentiment. The company’s strong financial fundamentals and Tata brand backing continue to attract long-term investors.

The IPO was oversubscribed and marked a major event in India’s financial markets this year. Tata Capital enjoys low funding costs, with AAA domestic and BBB international credit ratings. Net NPAs remain around 0.5% and provision coverage is robust. Assets under management surged to Rs 2.33 lakh crore in FY25, reflecting a 37% CAGR over the past two years. The firm maintains a diversified liability base, including banks, NCDs, CPs, NHB, SIDBI, and overseas sources. While technology and distribution investments have increased the cost-to-income ratio, operating leverage is expected to improve, supporting future profitability. Analysts note that the company trades at a post-issue price-to-book ratio of around 3.5x, with a “Subscribe–Long Term” recommendation.

The debut highlights investor confidence in Tata Capital’s long-term growth prospects despite short-term market caution. With a resilient business model, strong asset quality, and a wide distribution network, the company is positioned to capitalize on India’s expanding financial services sector. This listing sets the tone for investor sentiment in upcoming IPOs, especially in Tier 2 cities where retail participation continues to grow.