India’s Tata Capital makes muted market debut after $1.75 billion IPO

Tata signage is visible during the launch of the TATA EV charging hub in Mumbai, India, on September 9, 2025.
Indranil Aditya | Nurphoto | Getty Images
Shares of Tata Capital rose 1.37% in their trading debut Monday on the National Stock Exchange and BSE, following a ₹155.1 billion ($1.75 billion) initial public offering.
The IPO by the financial arm of the Tata Group was priced at ₹326 per share, the upper end of its price band, and was fully subscribed last week after a three-day bidding process.
Overall demand was strong, with total bids coming in at nearly twice the shares available. Institutional investors led the interest, subscribing around 3.4 times their allocation.
The lacklustre performance of Tata Capital reflects limited investor appetite for quality non-banking financial companies in India, said Hemindra Hazari, a SEBI-registered independent research analyst.
“The growth prospects for all financial intermediaries are limited as the Indian economy is in the midst of a slowdown and quality employment is bleak with no significant recovery expected in the near future,” he told CNBC, adding that U.S. tariffs on India have compounded the problem. “The general outlook for the sector is not promising.”
Non-institutional bidders, including high-net-worth individuals, put in about twice the reserved shares. Retail investors applied for roughly 1.1 times their portion.
Domestic and global investment banks such as Kotak Mahindra Capital, Axis Capital, BNP Paribas and HDFC Bank were among the joint bookrunners.
Tata Capital, India’s third-largest nonbank lender by revenue, offers a range of financial services, including retail loans, small and medium enterprise financing, corporate solutions and infrastructure lending.
India has been one of the world’s most vibrant IPO markets this year. The country recorded 146 IPOs that raised $7.2 billion in the third quarter this year, data from EY’s latest global IPO report showed. This brought the nine-month total to 254 IPOs raising $11.8 billion, underscoring the depth of India’s domestic capital markets.
LG Electronics India is scheduled to make its trading debut Tuesday.