Tata Capital, one of India’s largest NBFCs, is gearing up for the much-awaited Tata Capital IPO. Backed by the trusted Tata Group and a strong investor base, its unlisted shares have consistently drawn interest from the market. However, with the recent HDB IPO debacle, in which investors faced losses of up to 48%, the unlisted share market has raised eyebrows regarding the Tata Capital Pre-IPO valuation.
The HDB IPO Debacle: What can we learn from it?
The key point to note here is that HDB had a similar pattern before its IPO, but it turned out to be overvalued and dropped by 40% when HDB filed its RHP.
Just after a 30% jump in HDB Financial Unlisted Share Price, the NBFC’s IPO has left 50,000 investors with a notional loss of up to 48% of their holdings.What was deemed to be a soaring valuation ranging around Rs 1200-1350 per share came down to Rs 700-750 after HDB filed a Red Herring Prospectus(RHP) on June 19.
Is Tata Capital Correctly Valued?
For eg if an investor bought 1 crore unlisted shares of HDB at Rs 1,250 per share, and saw their investment go down to Rs 740 per share. This is a direct loss of Rs 540 crore for him.What can we learn from this case? That Reputation ≠ Valuation.
Bajaj Finance in the same operations and scale compared to tata capital, so if we make a relative valuation check, we come across the following data:
Thus, the current Tata Capital Unlisted Share Price of Rs 935 can be significantly overvalued.
Stockify's Stance
Investors should look for at least a 50% discount to today's Rs 935 per share before the risk-reward starts to look favourable unless Tata Capital can grow book value and earnings 3 to 4X faster than Bajaj Finance and retain those economics for a decade. That means Tata Capital's fair price can be around Rs 400-450 per share.
Timing Matters More Than Price
If you bought the Tata Capital Unlisted Share in 2023 around Rs 400-500, then you can consider it selling. But if you are planning to enter now, you might be buying Tata Capital for the brand and not the valuation. In the unlisted market, overpaying for even the best companies can make you lose your investments.
Investors must research, study the financials, business models and valuations before making a transaction in the unlisted space. Join and never miss an unlisted share update.
The Big Brand Value Of Tata Capital
Tata Capital is backed by the Tata Group, which carries the legacy of the renowned Tata Group.
Consistent Earnings Growth (From Rs 2,946 crore in 2023 to Rs 3655 crore in 2025).
The recent IPO news led to rising to almost Rs 1,000.
Even Bajaj Finance, the gold standard among Indian NBFCs, trades at ~5.9 × book (PB) while Tata Capital at 18.4 × is pricing in perfection three times over.
Tata Capital is trading at P/E of 113.1 which is more than 3X of Bajaj Finance P/E (34.5).
