^{Photo: India IPO}

Mumbai — Tata Capital, the financial services arm of India’s Tata Group, saw its shares rise 1.37% in their trading debut Monday on the National Stock Exchange and BSE, following a ₹155.1 billion ($1.75 billion) initial public offering.

The IPO was priced at ₹326 per share, the upper end of its price band, and was fully subscribed after a three-day bidding period. Total demand nearly doubled the number of shares on offer, with institutional investors subscribing roughly 3.4 times their allocation, highlighting strong participation from large players. Non-institutional bidders, including high-net-worth individuals, applied for nearly twice the reserved shares, while retail investors subscribed about 1.1 times their quota.

Despite the strong subscription, analysts described the muted trading performance as indicative of limited appetite for quality non-banking financial companies (NBFCs) amid India’s current economic slowdown. Hemindra Hazari, an independent research analyst, noted that growth prospects for financial intermediaries remain constrained, citing weak employment trends and sluggish recovery expectations. He also mentioned that U.S. tariffs on Indian exports have compounded investor caution.

Investment Banking and Market Support

Domestic and global investment banks such as Kotak Mahindra Capital, Axis Capital, BNP Paribas, and HDFC Bank served as joint bookrunners for the IPO, guiding the process and ensuring broad market access.

Company Profile and Market Context

Tata Capital, India’s third-largest nonbank lender by revenue, provides a comprehensive suite of financial services, including retail loans, small and medium enterprise (SME) financing, corporate solutions, and infrastructure lending. The firm’s IPO adds to India’s vibrant equity market, which has witnessed 146 IPOs raising $7.2 billion in the third quarter alone. For the first nine months of the year, the country recorded 254 IPOs, raising $11.8 billion, reflecting the deepening of domestic capital markets.

Looking ahead, LG Electronics India is scheduled to make its trading debut on Tuesday, continuing the momentum of India’s active IPO pipeline.