Tata Capital IPO: What GMP Signals As Investors Await The Biggest IPO Of 2025

The launch of one of the most-awaited IPOs of 2025 is just a few days away, as Tata Capital brings its initial public offering (IPO) to raise over Rs 15,000 crore from the primary market early next week.

One of India’s largest non-banking finance companies (NBFCs), Tata Capital has kept the price band for the IPO between Rs 310 and Rs 326 per share.

The Tata Capital IPO is a book-built issue of Rs 15,511.87 crore. It comprises a fresh issue of 21 crore shares worth Rs 6,846 crore and an offer-for-sale (OFS) of 26.58 crore shares amounting to Rs 8,665.87 crore.

Ahead of its launch on October 6, grey market investors are keeping a key eye on the GMP for the public issue, which has already been topping the trending charts.

Here's all you need to know about the Tata Capital IPO, including the latest grey market premium trends.

The grey market premium (GMP) for the Tata Capital IPO was Rs 20 as of 11:00 a.m. October 3. It indicates a listing price of Rs 346 apiece at a premium of 6.13% on the upper limit of the price band.

This means the unlisted shares of the company were trading at Rs 346 in the private market, indicating a potential listing gain of up to 6-7% when the shares of Tata Capital debut on the market next week.

Note: GMP does not represent official data and is based on speculation. GMP data sourced from InvestorGain.

The subscription window for the Tata Capital IPO will be open from October 6 to October 8.

Promoter Tata Sons will divest up to 23 crore shares, while International Finance Corporation (IFC) will sell up to 3.6 crore shares through the OFS route. The company will also issue up to 21 crore shares via a primary raise.

The company will seek investments from large institutions under the pre-IPO anchor round on Oct. 3, 2025.

To participate in the IPO, retail investors need to bid for a single lot size of 46 shares, requiring an investment of Rs 14,996. Small Non-Institutional Investors need to bid for 14 lots, amounting to an investment of Rs 2,09,944. Big Non-Institutional Investors can participate in the IPO by bidding for a minimum of 67 lots. It will lead to an investment of Rs 10,04,732.

Qualified Institutional Buyers (QIBs) will be offered 49.87% of the shares. Retail investors will be allocated 34.91% of the shares, and 14.96% will be reserved for Non-Institutional Investors.

Kotak Mahindra Capital Ltd. is the book running lead manager, and MUFG Intime India Ltd. is the registrar of the issue.

The share allotment for the Tata Capital IPO is expected to be finalised on October 9. The company will transfer shares to the demat accounts of successful bidders on October 10, and refunds to non-allottees will be done on the same day. 

Shares of the Tata Capital Ltd. are scheduled to list on the BSE and NSE on October 13.

Tata Capital proposes to use the fresh issue proceeds for augmenting its tier–I capital base to meet its "future capital requirements, including onward lending," arising out of the growth of the business.

Further, a portion of the proceeds from the fresh issue will be used towards meeting offer expenses.

Tata Capital is a non-banking financial company (NBFC) that offers financial products and services to retail, corporate, and institutional customers.. It is a subsidiary of Tata Sons Ltd.

In the quarter ended June, the NBFC posted a revenue of Rs 7,665 crore in comparison to Rs 6,546 crore posted in the corresponding period last year. The company's profit for the quarter more than doubled at Rs 1,041 crore, against Rs 472 crore reported in the quarter ended June 2024.

For fiscal 2025, Tata Capital reported a profit of Rs 3,655 crore, an increase from Rs 3,327 crore in the previous fiscal, while its revenue surged to Rs 28,313 crore from Rs 18,175 crore.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.