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

Group 1: Primary Equity Market Performance - In 2025, India's primary equity market reached a record ₹1.95 trillion through over 365 IPOs, with a total of ₹3.8 trillion raised across 701 IPOs in the last two years [1] - In 2024, ₹1.90 trillion was mobilized through 336 IPOs, highlighting the resurgence of Non-Banking Financial Companies (NBFCs) and banks' strategic re-entry into primary fundraising [2] Group 2: Sector Contributions and Performance - NBFCs dominated the IPO landscape in CY25, accounting for 26.6% of total IPO proceeds, raising ₹635 billion across 24 IPOs, with an oversubscription rate of 23x [3] - Prominent NBFCs such as Tata Capital, HDB Financial, ICICI Prudential AMC, and Bajaj Housing Finance contributed significantly to market confidence in retail lending and housing finance [4] Group 3: Individual Company Highlights - Tata Capital's IPO raised ₹155.1 billion and was subscribed about 2x, trading flat post-listing, indicating efficient price discovery [4] - HDB Financial Services had a strong subscription of 17.6x but experienced moderate secondary market performance, trading slightly above its offer price [5] - ICICI Prudential AMC emerged as a high-quality listing, trading over 20% above its offer price due to strong franchise strength [5] - Bajaj Housing Finance raised ₹65.6 billion with a robust 50x subscription, marking it as one of the most successful NBFC listings [6] Group 4: Bank Participation and Capital Raising - Private banks recorded virtually no IPO fundraising in CY25, while PSU banks dominated the Qualified Institutional Placement (QIP) market, with State Bank of India raising ₹250 billion, accounting for ~35% of total QIP issuance [6][7] - Other PSU banks like UCO Bank and Indian Overseas Bank also tapped equity markets to enhance capital ratios and support balance-sheet growth [7] Group 5: Offers for Sale (OFS) Trends - Banks and NBFCs were prominent in Offers for Sale (OFS), with Bank of Maharashtra and IOB among the largest transactions, indicating promoter monetization amid strong valuations [8]