Tata Capital IPO Fully Subscribed, Sparks Excitement Among Institutional Investors in Mumbai
Mumbai — Tata Capital’s $1.75 billion Initial Public Offering (IPO) was fully subscribed on Wednesday, the final day of a three-day bidding period, reflecting strong investor confidence in one of India’s leading non-bank lenders.
Institutional investors led the charge, demonstrating robust demand for the country’s largest IPO of 2025 and highlighting the growing momentum in India’s capital markets.
The IPO attracted bids worth 109.70 billion rupees ($1.24 billion), driven largely by qualified institutional buyers, who bid 1.2 times their reserved portion. Non-institutional investors also showed healthy interest, bidding over 1.13 times their quota, while retail investors contributed 0.84 times their allocation, according to exchange data.
The strong participation underscores the market’s trust in Tata Capital’s growth prospects and financial stability.
Tata Capital, part of the prestigious Tata Group, is India’s third-largest non-bank lender by revenue, trailing only Shriram Finance and Bajaj Finance. The company raised $523.2 million from anchor investors last week, including the Life Insurance Corporation of India and Norway’s sovereign wealth fund, signaling strong international and domestic support.
The IPO seeks a valuation of up to $15 billion, positioning Tata Capital as a key player in India’s financial services sector.
Prashant Tapse, senior vice president of research at Mehta Equities, noted that Tata Capital’s valuation appears “reasonable” compared to peers like Bajaj Finance and Shriram Finance, making it an attractive opportunity for long-term investors.
While some investor attention was drawn to LG Electronics India’s $1.3 billion IPO earlier this week, Tata Capital’s offering successfully captured strong institutional participation and enthusiasm for its listing.
The IPO is set to list on October 13, with Tata Capital issuing up to 210 million new shares, while existing shareholders offloaded up to 265.8 million shares.
The timing coincides with one of India’s busiest IPO periods, with the October-December quarter expected to see $8 billion raised through domestic listings, potentially pushing 2025’s total IPO tally close to last year’s record of $20 billion from 267 offerings.
Market analysts see Tata Capital’s fully subscribed IPO as a reflection of both the company’s robust fundamentals and the vibrancy of India’s financial markets.
The successful listing not only strengthens Tata Capital’s position in the non-bank lending space but also enhances investor confidence in India’s growing economy and capital market opportunities.
The strong institutional backing highlights faith in Tata Capital’s long-term growth potential, with investors confident that the company is well-positioned to leverage India’s expanding financial services market.
The IPO’s success adds to the positive momentum of India’s equity markets and demonstrates the continued appeal of marquee listings in attracting domestic and international investment.
