NBFCs raise Rs 635 billion across 24 IPOs in 2025, accounting for 26.6% of total proceeds

Core Insights - The Indian primary equity market raised a record Rs 1.95 trillion through over 365 IPOs in 2025, following Rs 3.8 trillion raised across 701 IPOs in the previous two years [7] - Non-Banking Financial Companies (NBFCs) emerged as the dominant players in 2025, accounting for 26.6% of total IPO proceeds, raising Rs 635 billion across 24 IPOs, marking the highest contribution by any sector in the last two years [2][7] - The resurgence of NBFCs and the strategic re-entry of banks into primary fundraising were significant trends during this period [7] NBFC Performance - NBFC IPOs saw aggregate subscriptions of nearly Rs 14.9 trillion, resulting in a 23x oversubscription, competing with sectors like capital goods and healthcare [4][7] - Notable NBFC IPOs included Tata Capital's Rs 155.1 billion IPO, which was subscribed about 2x and has traded flat since listing, indicating efficient price discovery [5][7] - Bajaj Housing Finance was highlighted as one of the most successful NBFC listings, raising Rs 65.6 billion with a robust 50x subscription [6][7] Bank Activity - Private banks recorded virtually no IPO fundraising in 2025, while Public Sector Undertaking (PSU) banks dominated the Qualified Institutional Placement (QIP) market, raising Rs 250 billion, which accounted for approximately 35% of total QIP issuance [6][8] - Banks and NBFCs were prominent in Offers for Sale (OFS), with 60% of OFS proceeds coming from privately owned enterprises, indicating promoter monetization amid strong valuations [6][8]