India, Oct. 6 -- Investors have turned cautious on demand for unlisted shares of Tata Capital Ltd. in the unregulated market, even as India's biggest IPO of 2025 opens for subscription today.

The Tata Capital GMP is currently seen at Rs.24-36/share as against Rs.735-1,125/share before the IPO price band was announced a week ago, according to InvestorGain data. By pricing the IPO at Rs.310-326 apiece, the company has effectively reset expectations on valuation metrics relative to peers, especially given Tata Capital's operating performance.

Such a "discount" leaves the headroom for a listing-day pop, analysts say, but also raises the bar for performance of the stock after listing.

To be sure, the grey market premium is a signal, not a g...