| Tata Capital IPO: Key Details You Shouldn’t Overlook | Tata Capital IPO Review |
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The much-awaited Tata Capital IPO has generated strong buzz across the Street, with nearly every leading brokerage house giving it a “Subscribe” recommendation. Backed by the trusted Tata Group pedigree, diversified financial services franchise, and consistent growth track record, analysts see the IPO as a long-term structural play on India’s financial expansion.
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Tata Capital IPO Snapshot
| Particular | Details |
|---|---|
| Price Band | INR 310 – 326 per share |
| Issue Size | INR 15,511.87 crore (INR 6,846 crore Fresh Issue + INR 8,665.87 crore OFS) |
| Issue Dates | 6 – 8 October 2025 |
| Minimum Lot | 46 shares |
| Listing | BSE & NSE (13 October 2025) |
| Post-Issue Market Cap | INR 1.31 – 1.38 lakh crore |
| Objective | To strengthen Tier-I capital base for onward lending and future growth |
Post-issue, promoter holding will stand at 85.5%, down from 95.6%, with retail investors allotted 35% of the issue.
Tata Capital IPO Brokerage Recommendation: Broad-Based ‘Subscribe’ Calls Across the Street
Almost every major research house tracking the issue — including BP Wealth, Canara Bank Securities, Mehta Equities, Kunvarji Finstock, Samco Securities, SMC Global, and Ventura Securities — has expressed optimism over Tata Capital’s fundamentals, citing its strong financials, diversified lending portfolio, and brand trust.
Here’s what each brokerage has said:
🔹 BP Wealth: “A Strong Franchise for Long-Term Investors”
BP Wealth recommends subscribing, highlighting that Tata Capital is “a leading diversified NBFC backed by a trusted brand and prudent risk management framework.” The brokerage adds that “the company’s robust growth in loan book, expanding NIMs, and digital transformation make it a quality long-term investment.”
🔹 Canara Bank Securities: “Strong Parentage and Consistent Growth Make it a Safe Bet”
Canara Bank Securities noted that “Tata Capital’s strong Tata Group lineage ensures stability, superior governance, and brand-led customer trust.” It added that the IPO offers “an opportunity to participate in a high-quality NBFC with sustainable earnings and improving return ratios.”
🔹 Mehta Equities: “Subscribe for Long-Term Wealth Creation”
Mehta Equities emphasized the company’s “diversified presence across retail, SME, and corporate lending with strong profitability metrics.” The brokerage stated, “The issue is fairly valued given the company’s scale, digital reach, and consistent growth trajectory; we recommend subscribing for the long term.”
🔹 Kunvarji Finstock: “Subscribe – Strong Growth Outlook, Brand Support, and Expanding Margins”
Kunvarji’s note underlined that “TCL, the Tata Group’s flagship financial services arm, continues to leverage its brand strength and distribution network to sustain double-digit growth.” The firm pointed to the company’s Net Interest Income CAGR of 26% (FY23–FY25) and noted that “margin improvement and capital infusion position it well for continued expansion.”
🔹 Samco Securities: “Subscribe – A Trusted, Phygital Powerhouse”
Samco highlighted Tata Capital’s loan book CAGR of 37% over FY23–FY25, calling it “a digitally enabled, well-diversified NBFC with strong execution.” The report stated, “Promoter support, risk management strength, and operational scalability make Tata Capital a stable compounder for long-term investors.”
🔹 SMC Global Securities: “Subscribe for Long-Term Gains”
SMC Global’s report said, “The IPO provides exposure to a high-quality NBFC backed by a premium brand, diversified lending book, and expanding profitability.” It noted that “Tata Capital’s prudent risk control and improving return on equity (12.6% in FY25) justify a long-term positive view.”
🔹 Ventura Securities: “A Trusted Name Poised for Growth”
Ventura called Tata Capital “a trusted and well-diversified financial services platform with a focus on sustainable growth.” The brokerage added that “the recent merger with Tata Motors Finance has strengthened its balance sheet, improved scale, and deepened customer access.” It believes the company is “well-positioned to capture opportunities in India’s growing credit market.”
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Why the Street is Bullish on Tata Capital
1. Robust Financial Track Record
- Net Interest Income: INR 10,690 crore in FY25 vs INR 6,798 crore in FY24 (26% CAGR)
- PAT: INR 3,665 crore in FY25 vs INR 3,150 crore in FY24
- NIM: Improved to 5.2% (FY25) from 5.0% (FY24)
- Loan Book: Expanded from INR 1.2 lakh crore in FY23 to INR 2.26 lakh crore in FY25
2. Powerful Tata Group Parentage
Analysts highlighted that the company benefits from the AAA-rated balance sheet and brand strength of the Tata Group, ensuring access to low-cost funds and high investor confidence.
3. Diversified Business Model
Operating across Retail, SME, and Corporate Finance, Tata Capital’s risk is well spread. Retail loans now account for over 60% of its book, providing resilience and steady income growth.
4. Digital-First Strategy and Efficiency
Brokerages lauded the company’s AI-driven lending and API-based onboarding, calling it a “phygital NBFC” that combines physical reach with digital speed to scale effectively.
5. Prudent Risk Management and Asset Quality
With Gross Stage 3 Loans at 1.9% and Net Stage 3 at just 0.8%, Tata Capital maintains one of the cleanest portfolios among large NBFCs. Its Provision Coverage Ratio (58.5%) and CRAR (16.9%) indicate a solid balance sheet.
6. Reasonable Valuation
At the upper band, the IPO is priced at ~35x FY25 EPS (INR 9.3) — viewed as reasonable given its scale, growth, and brand premium. Peers like Bajaj Finance trade at higher multiples despite similar growth rates.
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Common Themes in Brokerage Recommendations
| Factor | Consensus View |
|---|---|
| Tata Group backing | Provides stability, strong brand trust |
| Financial growth | Strong NII, PAT, and ROE trajectory |
| Diversification | Retail, SME, and corporate balance |
| Digital transformation | Enhancing scalability and efficiency |
| Asset quality | Among best-in-class for large NBFCs |
| Valuation | Fair and justified premium |
| Long-term potential | Beneficiary of India’s credit upcycle |
The Bottom Line
Across the board, brokerages remain decisively positive on Tata Capital’s IPO, calling it a rare opportunity to invest in a trusted, digitally-empowered, and growth-focused NBFC.
With strong parentage, robust governance, consistent earnings growth, and a scalable digital ecosystem, Tata Capital is being viewed as a “steady compounder” that can deliver sustained long-term returns as India’s credit cycle accelerates.
In summary, all major brokerage houses — BP Wealth, Canara Bank Securities, Mehta Equities, Kunvarji Finstock, Samco Securities, SMC Global, and Ventura Securities — have unanimously rated the issue as “Subscribe”, citing a combination of brand strength, balance sheet quality, growth momentum, and digital excellence.