Tata Capital launched its 15,511.87 crore rupee IPO for subscription on October 6, which was the largest issue of 2025 so far in India. The non-banking financial institution has fixed a price band of 310-326 rupees per share of equity, with the issue open for October 8. During the first couple of hours of trading, the IPO was subscribed to 0.04 times, with retail investors demonstrating greater interest at 0.07 times the subscription. This is India’s busiest week for IPO action so far in 2025, with several companies coming to the market simultaneously.
WeWork India Lags on Second Day of Subscription
While this, WeWork India saw its second day of bidding following a sluggish first-day take. The provider of flexible workspace’s 3,000 crore rupee issue, which was listed on October 3, was subscribed by just 4 per cent on the first day. The price band for the company is between 615 to 648 rupees per share, with the issue closing on October 7. The weak take indicates investors are cautious about which IPOs to invest in amid this hectic period.
The grey market is reflecting varying degrees of interest in both issues. Tata Capital shares are quoting at a premium of 7.5 to 8 rupees in the grey market, reflecting an estimated listing price of 333.5 rupees, about 2.3 per cent higher than the higher price band. This is down from the weekend’s 20 rupee premium, which market analysts attribute to the large offer-for-sale component where existing shareholders are offering stakes.
Grey Market Reflects Hesitant Investor Sentiment
WeWork India’s grey market premium has been kept low at only 5 rupees, which represents merely 0.77 per cent of possible gains from the higher price band. The premium declined from 15 rupees on October 2, reflecting hesitant investor sentiments towards the co-working space provider. Grey market trading occurs before the shares are formally listed and provides an initial indication of how investors perceive the company’s future.
The comparison of Tata Capital and WeWork India reveals that investors are choosing wisely this week of frenzied IPO activity. Tata Capital is helped by its powerful brand name and long-standing business in the financial space. WeWork India is more sceptical because of the worldwide WeWork business’s much-publicised financial struggles over the last few years, though the Indian arm is a distinct entity.
Strong Institutional Support for Tata Capital Offering
Tata Capital demonstrated strong traction among large investors by raising 4,642 crore rupees from 68 anchor investors on October 3, with demand almost five times the size of the allocated portion. Notable investors who participated in the process included Life Insurance Corporation of India, ICICI Prudential Mutual Fund, Goldman Sachs, and Morgan Stanley. Institutional investors’ participation early on is considered a good omen for the success of the IPO.
The IPO consists of a new issue of 6,846 crore rupees and an offer-for-sale of 8,665.87 crore rupees. Tata Sons is selling 23 crore shares, and International Finance Corporation is offloading 3.58 crore shares. This implies some of the money is for company growth while some is for existing shareholders who are exiting part of their investment.
Brokerages Suggest Long-Term Investment Strategy
Several brokerages, such as Anand Rathi and Kotak Securities, have given a subscribe for long-term ratings for the Tata Capital IPO. They mention the company’s excellent market position as India’s third-largest diversified non-banking financial firm. These recommendations indicate that even though listing gains short term may be subdued considering the grey market premium, the company has sound fundamentals for those investors who can keep stocks for at least a few years.
The recent news indicates India’s IPO market is on the boil, even as certain companies have received lukewarm responses. Tata Capital’s institutional support and brand power place it ahead of WeWork India. Retail investors will need to weigh in on whether the valuations today provide sufficient upside potential. The next couple of days will confirm if subscription volumes improve or if investors are still wary of committing new capital to new issues.
News At Glance
- Tata Capital opens India’s biggest IPO of 2025, valued at 15,511.87 crore rupees, on October 6
- Price band fixed at 310 to 326 rupees per share, with issue closing on October 8
- The company raised 4,642 crore from 68 anchor investors with a five times oversubscription
- Grey market premium at 7.5 to 8 rupees indicates modest 2.3 per cent listing gains
- WeWork India IPO lags with mere 4 per cent subscription on first day
FAQs
- When will the Tata Capital IPO close?
The Tata Capital IPO has opened on October 6 and is open for subscription until October 8, 2025.
- What is the price band of the Tata Capital IPO?
The price band is fixed at 310 to 326 rupees per equity share for institutional and retail investors.
- How much is Tata Capital raising?
Tata Capital is raising a total amount of 15,511.87 crore rupees, making it India’s biggest IPO of 2025.
- Who are the anchor investors in the Tata Capital IPO?
Large anchor investors are LIC, ICICI Prudential Mutual Fund, Goldman Sachs and Morgan Stanley, among a total of 68 investors.
- What is the grey market premium for Tata Capital?
Tata Capital shares are quoted in the grey market at a premium ranging from 7.5 to 8 rupees above the higher price band.
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