Punting on unlisted shares of prominent companies has become increasingly popular in recent years, but investors in Tata Capital are now facing significant losses as the price band for its initial public offering (IPO) is set at a fraction of the prices seen on unlisted trading platforms.
The IPO price band for Tata Capital has been established between ₹310 and ₹326, while its unlisted shares had been trading above ₹1,000 from April 2024 until June 2025, before beginning to decline. As of September 28, shares of Tata Capital were still quoted at over ₹700, but have since plummeted to approximately ₹300.
Many investors, including some elderly individuals, are now left holding high-priced shares that have sharply decreased in value. Investment advisor Sandip Sabharwal commented on social media platform X, stating, “Tata Capital #IPO should finally break the back of the Unlisted Stock Punting game. Stock was ramped up to ₹1,100 in the unlisted market right through 2024 and early parts of 2025. IPO Price is one third of this price.”
Over the last year, Tata Capital’s shares have witnessed a 70 percent decline—largely due to the recent drop—with a 59 percent decrease noted over just the past month. The rise of multiple platforms for trading unlisted shares has contributed to an inflated market perception. Kranthi Bathini, Director at Wealthmills Securities, explained, “There are no proper price discovery and transactions are usually negotiated, based on perception.”
This unregulated trading environment has led the Securities and Exchange Board of India (SEBI) to propose the establishment of a formal platform for unlisted shares aimed at increasing transparency and enhancing price discovery for pre-IPO companies.
The article was published on September 29, 2025.
