India’s primary equity market hit a new high in 2025, pulling in a record Rs 1.95 trillion from more than 365 IPOs.
Record Fundraising in 2025
Over the last two years, a total of Rs 3.8 trillion was raised across 701 IPOs. In 2024, companies mobilised Rs 1.90 trillion through 336 offerings, setting the stage for this year’s surge.
NBFCs Lead the IPO Wave
- NBFCs contributed 26.6% of total IPO proceeds, raising Rs 635 billion from 24 listings – the largest sector share in two years.
- Collectively, NBFC IPOs attracted nearly Rs 14.9 trillion in bids, about a 23‑times oversubscription.
- Key players included Tata Capital, HDB Financial Services, ICICI Prudential AMC and Bajaj Housing Finance.
Tata Capital raised Rs 155.1 billion, was subscribed roughly 2× and has traded flat since listing, showing balanced pricing.
HDB Financial Services saw a strong 17.6× subscription and opened slightly above its issue price.
ICICI Prudential AMC outperformed, trading more than 20% above the offer price thanks to solid cash‑flow expectations.
Bajaj Housing Finance attracted a massive 50× subscription on its Rs 65.6 billion raise, making it one of the most successful NBFC listings of the cycle.
Banks Take a Calibrated Approach
Private banks virtually skipped IPO fundraising in 2025, while public‑sector banks turned to Qualified Institutional Placements (QIPs) and Offers for Sale (OFS) to boost capital.
- State Bank of India (SBI) raised Rs 250 billion via QIP, accounting for about 35% of all QIP issuance this year.
- Other PSU banks such as UCO Bank, Central Bank of India and Indian Overseas Bank also tapped equity markets to strengthen capital ratios.
Offers for Sale (OFS) Highlights
Bank of Maharashtra and Indian Overseas Bank were among the largest OFS transactions in 2025. Around 60% of OFS proceeds came from privately owned companies, indicating promoter share‑selling amid strong valuations.
Key Takeaways for Investors
- NBFCs are the primary beneficiaries of the IPO boom, offering exposure to retail lending, housing finance and diversified credit.
- PSU banks are using QIPs and OFS to shore up capital, which could support future loan growth.
- High subscription multiples suggest strong investor appetite, but post‑listing performance varies across issuers.
Remember, this is perspective, not a prediction. Do your own research and consider your risk tolerance before making any investment decisions.