India's primary market raised a record Rs 1.95 trillion in 2025 from 365+ IPOs. Over two years, Rs 3.8 trillion was raised, with NBFCs and banks leading the charge. NBFCs were dominant, raising Rs 635 billion across 24 IPOs in CY25.
In 2025, India's primary equity market scaled new heights as companies raised a record Rs 1.95 trillion through more than 365 initial public offerings (IPOs), according to a latest strategy report by Motilal Oswal Financial Services.
In the last two years, Rs 3.8 trillion were raised across 701 IPOs in the primary market. In 2024, Rs 1.90 trillion was mobilised through 336 IPOs. The resurgence of NBFCs and the strategic re-entry of banks into the primary fundraising arena also took the centrestage in this time period. Credit intermediaries, especially NBFCs, emerged as key beneficiaries of investor appetite, while banks recalibrated their capital-raising playbooks through selective IPOs, QIPs, and OFS.
NBFCs Dominate the IPO Market
NBFCs were the dominant players in CY25. They accounted for 26.6% of total IPO proceeds, raising Rs 635 billion across 24 IPOs, the highest contribution by any sector in the last two years, the report said. NBFC IPOs saw aggregate subscriptions of nearly Rs 14.9 trillion, translating into 23x oversubscription, rivalling even capital goods and healthcare, it added.
Performance of Key NBFC IPOs
Prominent names such as Tata Capital, HDB Financial, ICICI Prudential AMC, and Bajaj Housing Finance anchored this wave, reinforcing the market's confidence in retail lending, housing finance, and diversified credit platforms. Tata Capital's Rs 155.1 billion IPO, India's fourth largest, was subscribed about 2x and has traded essentially flat since listing, indicating efficient price discovery. HDB Financial Services, despite a strong 17.6x subscription and a positive listing debut, has experienced a more moderate secondary-market performance, though it continues to trade marginally above its offer price. ICICI Prudential AMC stands out as a high-quality NBFC listing, supported by strong franchise strength and predictable cash flows, delivering consistent gains both on listing and in the secondary market, with the stock trading over 20% above its offer price. Bajaj Housing Finance emerged as one of the most successful NBFC listings of the cycle, raising Rs 65.6 billion and witnessing a robust 50x subscription.
Banks Opt for a Calibrated Fundraising Approach
In contrast, banks 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 raised Rs 250 billion, accounting for ~35% of total QIP issuance in CY25. Alongside SBI, UCO Bank, the Central Bank of India, and Indian Overseas Bank tapped equity markets primarily to shore up capital ratios and support balance-sheet growth.
Offers for Sale (OFS) Gain Traction
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 proceeds came from privately owned enterprises, indicating promoter monetisation amid strong valuations, the report said. (ANI)
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