Tata Capital IPO Faces Tepid Debut Amid Cooling Sentiment

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Once trading near ₹1,100 in the grey market, Tata Capital’s IPO, priced at ₹326, shows no premium before listing.

By S JHA

Mumbai, October 12, 2025 — The much-anticipated Tata Capital IPO, once seen as a blockbuster issue, is facing a subdued investor response with no premium indicated ahead of listing, reflecting a marked shift in India’s overheated IPO and unlisted markets.

Market watchers point to a widening disconnect between unlisted share prices and IPO valuations of marquee companies such as Tata Capital, HDB Financial Services, and NSDL.

“Tata Capital’s IPO pricing at ₹310–₹326 has shocked pre-IPO investors who had bought it at ₹1,125 in April — a loss of nearly 71%,” noted RJ Stocks on X (formerly Twitter). “Listing is expected to be subdued due to supply overhang from Tata Sons and IFSC,” it added.

Similarly, HDB Financial Services, which traded at over ₹1,200 in the unlisted market, saw its IPO priced at ₹740, while NSDL’s grey market premium dropped by 22% near listing. Analysts say this correction signals a cooling of speculative hype and a return to fundamentals.

According to investment commentators, the grey market has long misled investors with “liquidity illusions” and inflated valuations. “When IPOs from top Indian groups struggle to attract enthusiasm, it clearly signals how cautious the market has become,” said investor Pankaj Parikh.

Despite muted listing expectations, analysts see Tata Capital as a long-term retail play backed by the Tata Group’s governance, diversified NBFC portfolio, and fair valuation. With 35% retail allocation worth ₹6,000 crore, experts advise patience over chasing short-term gains.

“The IPO market is recalibrating,” said market strategist Pawan Goyal. “Investors are finally respecting discipline over hype — a healthy sign for India’s equity ecosystem,” he added in a post on X.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)