Key Risks to Watch After Listing
While Tata Capital remains one of India’s fastest-growing non-banking financial companies (NBFCs), investors should keep an eye on the following risks:
Asset quality concerns: The acquisition of Tata Motors’ vehicle finance arm (TMFL), which has relatively high NPAs, could pose challenges if delinquency levels rise.
Credit rating pressure: Any downgrade in Tata Capital’s credit ratings could hurt its borrowing capacity, raise financing costs, and affect market access.
Technology and cybersecurity threats: As seen in the recent cyberattack on Tata Motors’ UK subsidiary, Jaguar Land Rover, increasing digitisation brings risks of data breaches and system failures, potentially affecting operations and investor confidence.
Verdict: The muted GMP suggests a steady but cautious debut, and investors may prefer to hold rather than chase immediate listing gains.
