Tata Capital Shares Rise 1.4% on Debut; Brokerages Set Rs 360 Target Price1 day ago
Tata Capital made its stock market debut, listing at Rs 330, which was 1.23% above its IPO price, and closed 1.4% higher on its first trading day. Emkay Global and JM Financial initiated coverage with buy ratings and target prices of Rs 360, indicating potential 10% upside from the IPO price. The brokerages cited Tata Group parentage, AAA credit rating, and strong credit profile as key positives. Emkay expects 30% earnings per share CAGR during FY25-28, driven by vehicle finance segment turnaround and higher secured loans share. Assets under management are projected to grow at 24% CAGR over the same period. The IPO was subscribed 1.95 times, with qualified institutional buyers oversubscribing 3.42 times. Tata Capital raised Rs 4,642 crore from anchor investors, led by LIC which acquired shares worth nearly Rs 700 crore. The company is India's third-largest diversified NBFC with total assets of Rs 2.52 lakh crore and maintains a gross NPA ratio of 2.1%. Between FY23 and FY25, revenue rose 56% while profit after tax increased 10% to Rs 3,655 crore.