Market expert Prashanth Tapse said Tata Capital’s management has sensibly priced the IPO slightly below the industry average, given the current market conditions. At a P/B of 3.2x based on annualized FY26e earnings—versus 4x for comparable listed peers—the company has left ample headroom for a healthy listing pop, making it attractive to new investors, noted the Senior Vice President of Research & Analyst at Mehta Equities.

Expert Nilesh Jain described the pricing as a “sweetener” and a goodwill gesture for investors. “The company has trimmed its post-money equity valuation by 5% to $15.7 billion ahead of the IPO, leaving more value on the table,” said the Head Vice President, Equity Research Technical and Derivatives at Centrum Broking.

While the price band may have surprised holders of the company’s unlisted shares, experts offer a contrarian perspective, viewing it as a strategic move to balance investor interest and listing potential.

Tapse was not surprised by the move, noting that Tata Capital’s rights issue at Rs 343 per share was slightly above the IPO price and well below its unlisted market price at the time of the rights issue, effectively hinting at the possible IPO band. He added that pre-IPO valuations often run ahead of fundamentals, driven by speculation, limited supply, and froth in the private market.

“When a company approaches a public issue, the focus shifts to realities such as secondary market sentiment, earnings trajectory, and peer valuations. Valuation-wise, Tata Capital’s inflated unlisted share price was even higher than established leaders like Bajaj Finance,” he explained.

Tata Capital’s unlisted share price had been stretched, sliding despite the buzz following Sebi’s IPO approval in June. While UnlistedZone valued the shares at Rs 735, Wealth Wisdom pegged them at Rs 650 per share on September 26, the day the IPO date was announced.

As the third-largest NBFC in India with total gross loans of Rs 2.3 lakh crore as of June 2025, Tata Capital is valued at a P/B of 3.4x – lower than the largest NBFC Bajaj Finance (P/B 7.0) but higher than the second-largest Shriram Finance (P/B 2.0), Sunny Agrawal, Head – Retail Fundamental Desk at SBI Securities, noted in a report.

source: UnlistedZone: 6-mo trajectory of Tata Capital share price

Note to investors

Tapse advises investors to view Tata Capital as a long-term structural play. “As one of India’s most diversified NBFCs with strong Tata Group parentage, the company is well positioned to capture growth across all segments. With rising credit penetration, formalisation of the economy, and growing demand for consumer and business financing, Tata Capital offers a credible and scalable way to participate in the broader NBFC growth cycle,” said the Mehta Equities ana ..