The revival of NBFCs and the strategic re-entry of banks into the primary fundraising arena also took center stage during this period.Credit intermediaries, especially NBFCs, emerged as the key beneficiaries of investor interest, while banks recalibrated their capital raising playbook through selective IPOs, QIPs and OFS.
NBFCs were the dominant players in CY25. They accounted for 26.6% of total IPO proceeds and raised Rs 635 billion through 24 IPOs, the highest contribution by any sector in the past two years, the report said.
The NBFC’s IPOs totaled nearly Rs 14.9 trillion, translating into a 23x oversubscription, rivaling even capital goods and healthcare, it added.
Prominent names like Tata Capital, HDB Financial, ICICI Prudential AMC and Bajaj Housing Finance have anchored this wave and strengthened market confidence in retail lending, home finance and diversified lending platforms. Tata Capital’s Rs 155.1 billion IPO, India’s fourth largest, was subscribed at about double the size and has traded almost flat since its IPO, indicating efficient pricing. HDB Financial Services, despite a strong 17.6x subscription and a positive listing debut, has seen a more muted performance in the secondary market, although it continues to trade marginally above its offer price.
ICICI Prudential AMC stands out as a high-quality NBFC listing, backed by strong franchise strength and predictable cash flows, delivering consistent profits both on the listing and in the secondary market, with the shares trading over 20% above the offer price.
Bajaj Housing Finance emerged as one of the most successful NBFC listings of the cycle, raising Rs 65.6 billion and witnessing robust 50x subscription.
The banks, on the other hand, took a more calibrated approach. While private banks recorded virtually no IPO fundraising in CY25, PSU banks emerged as dominant players in the Qualified Institutional Placement (QIP) market.
State Bank of India alone has raised Rs 250 billion, accounting for ~35% of total QIP issuances in CY25.
In addition to SBI, UCO Bank, the Central Bank of India and the Indian Overseas Bank mainly used the equity markets to strengthen capital ratios and support balance sheet growth.
Another telling signal came from Offers for Sale (OFS). Banks and NBFCs featured prominently, with Bank of Maharashtra and IOB among the largest OFS transactions in CY25.
60% of OFS revenues came from private companies, indicating monetization by the promoters amid strong valuations, the report said.
#NBFCs #raise #billion #IPOs #accounting #total #proceeds