Key Points:
- Record IPO: Tata Capital raised ₹15,500 crore in India’s biggest IPO of 2025.
- Strong Demand: Global investors like Morgan Stanley and Goldman Sachs showed strong interest.
- Market Boost: The listing signals strong IPO momentum and investor confidence in India’s market.
Mumbai, Oct. 13 — Tata Capital Ltd., a financial services arm of the Tata Group, began trading on the Bombay Stock Exchange on Monday following India’s largest initial public offering (IPO) of 2025. The Rs 15,500 crore ($1.7 billion) issue marks the biggest fundraising since Hyundai Motor India Ltd.’s $3.3 billion IPO last year.
The offering drew strong participation from global investors, including funds managed by Morgan Stanley and Goldman Sachs Group Inc. Based on grey market activity, Tata Capital’s shares were expected to list close to their issue price of Rs 326.
The listing kicks off what analysts expect to be a busy week for the Indian stock market. LG Electronics Inc.’s Indian unit is scheduled to debut on Tuesday, signaling continued momentum in the country’s primary market amid strong investor appetite.
Record-breaking offering
Tata Capital’s public issue was oversubscribed by both institutional and retail investors, underlining growing confidence in India’s financial sector. The company operates nearly 1,500 branches across the country, providing consumer loans, wealth management, and commercial financing services.
Brokerage firm Choice noted that Tata Capital is well-positioned for long-term growth due to its strong brand and expanding presence. However, it cautioned that key profitability measures such as return on assets remain below those of some competitors. The brokerage recommended the stock as a long-term investment.
The IPO’s success comes despite challenges in India’s non-banking financial sector, which has faced tighter liquidity and rising funding costs in recent quarters. Market observers said the government’s recent policy measures to support non-bank lenders may help improve industry conditions going forward.
Growing global interest
India’s IPO market has become one of the most active worldwide, buoyed by strong domestic liquidity and a rapidly growing base of retail investors. In the first nine months of 2025, Indian companies raised more than $11 billion through IPOs, making the country the fourth-largest market globally, according to Bloomberg data.
October alone is expected to bring in more than $5 billion from new listings, with several large issues in the pipeline. Analysts said Tata Capital’s performance on listing day will be closely watched as an indicator of market sentiment for upcoming offerings.
“Tata Capital’s debut could set the tone for the next wave of listings in India’s financial and consumer sectors,” said a senior Mumbai-based fund manager. “Investor response shows confidence in the broader economy and the resilience of domestic demand.”
Managed by top institutions
The IPO was managed by a consortium of major financial institutions, including Kotak Mahindra Capital Co., Axis Bank Ltd., HDFC Bank Ltd., ICICI Securities Ltd., IIFL Capital Services Ltd., and SBI Capital Markets Ltd. International banks such as BNP Paribas SA, Citigroup Inc., HSBC Holdings Plc, and JPMorgan Chase & Co. also acted as book-running lead managers.
The successful listing further reinforces India’s status as a global fundraising hub. With strong economic growth and an expanding investor base, market analysts expect the momentum in IPO activity to continue into the next year.
As trading began in Mumbai, attention turned to how Tata Capital’s stock would perform amid a flurry of upcoming listings and a robust domestic equity market. The debut marks another milestone for the Tata Group, India’s oldest and most diversified conglomerate, as it expands its financial services footprint.
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