Tata Capital, Groww: BFSI sector gears up for Rs. 58,000 crore (US$ 6.54 billion) IPO push

As initial public offerings (IPOs) in the banking, financial services, and insurance (BFSI) sector gain traction, analysts highlight regulatory mandates as the primary driver amid historically low participation in primary markets. In CY25, three BFSI companies raised Rs. 16,765 crore (US$ 1.89 billion), accounting for 21.4% of total IPO proceeds, with a pipeline of 15 companies expected to raise nearly Rs. 58,000 crore (US$ 6.54 billion) from a total market pipeline exceeding Rs. 2,70,000 crore (US$ 30.44 billion). Major upcoming issues include Tata Capital at Rs. 17,000 crore (US$ 1.92 billion), ICICI Prudential Asset Management at Rs. 10,200 crore (US$ 1.15 billion), and Billionbrains Garage Ventures, parent of Groww, at Rs. 6,000 crore (US$ 676.36 million). Regulatory guidelines requiring listing for insurance firms, non-banking finance companies (NBFCs), and asset reconstruction companies (ARCs) are driving this trend.
While BFSI’s share in IPO fundraising has declined, from one-third of issues in 2020 raising 60% of total funds to 15% in recent years, the sector remains a key focus due to capital requirements and regulatory nudges. New age fintech firms like Groww and Pine Labs are emerging as prominent players, expected to raise nearly Rs. 12,000 crore (US$ 1.35 billion), aided by private equity exits and market consolidation. Analysts note that IPO investors are increasingly prioritising profitability overgrowth narratives, and retail interest largely centres on listing gains rather than the company’s business model.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.