Tata Capital IPO GMP Update
The Tata Capital IPO Grey Market Premium (GMP) is currently ₹7.5-₹8 per share as of October 6, 2025, indicating a modest premium of approximately 2.30% over the upper price band of ₹326. This translates to an estimated listing price of around ₹333.5-₹334 per share.
GMP Trends in Past Week
The GMP trend has shown a declining curve over the past week:
What It Suggests:
This represents a significant cooling off from earlier triple-digit premiums to more conservative levels, suggesting measured investor sentiment rather than speculative enthusiasm.
IPO Subscription Status - Day 1
Tata Capital's ₹15,512 crore IPO opened on October 6, 2025 with a muted response, achieving 39% subscription by the end of Day 1:
Category-wise Subscription:
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QIBs (Qualified Institutional Buyers): 52%
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Retail Individual Investors: 35%
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Non-Institutional Investors: 29%
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Employee Category: 100% (fully subscribed)
The IPO received bids for 129 million shares worth ₹4,200 crore against the total offering of 333.4 million shares.
Key IPO Details
Price Band: ₹310-₹326 per share
Issue Size: ₹15,512 crore (largest IPO of 2025)>
Lot Size: 46 shares (minimum investment: ₹14,996)
Subscription Period: October 6-8, 2025
Expected Listing: October 13, 2025
Issue Composition:
- Fresh Issue: ₹6,846 crore
- Offer for Sale: ₹8,666 crore by Tata Sons and IFC
Market Analysis
The conservative GMP of 2.30% reflects several factors:
- Market Maturity:Investors are showing disciplined pricing rather than speculative bidding
- Large Issue Size:The massive ₹15,512 crore offering requires substantial institutional participation
- Valuation Concerns:At the upper band, Tata Capital trades at 3.4x price-to-book value, which analysts consider reasonable but not undervalued
Anchor Investor Response
The company successfully raised ₹4,642 crore from 135 anchor investors on October 3, including prominent names like LIC (₹700 crore allocation), Morgan Stanley, Goldman Sachs, and leading Indian mutual funds. This strong institutional backing provides a foundation for the public offering.
Investment Outlook
Despite the modest GMP, analysts remain cautiously optimistic about Tata Capital's prospects, citing its strong Tata Group parentage, diversified NBFC operations, and robust risk management practices. The subdued grey market premium suggests realistic pricing rather than overheated speculation, which could be positive for long-term investors seeking stable returns from India's financial services sector.