IPO Trends and Financial Performance of Banking and NBFC Sectors: An Empirical Investigation

Abstract

The Indian primary market has seen an unprecedented surge in the number of Initial Public Offerings (IPOs) of financial intermediaries in the Indian primary market during the period 2020-2025. This empirical study will analyze IPO trends and financial performance of Banking and Non-Banking Financial Company (NBFC) in India. The aim of the study is to analyse listing-day returns, subscription patterns and post listing financial performance of selected banking and NBFC IPOs and to test the hypothesis whether sectoral affiliation is a significant determinant in IPOs. The study uses the descriptive statistics, percentage analysis, t-test and correlation analysis of a purposive sample of major banking and NBFC IPOs (2020-2025). The hypothesis to be tested is that sectoral classification is strongly related to listing gains and post-listing performance. Findings indicate that NBFC IPOs (e.g., Bajaj Housing Finance, Tata Capital) dominated the proceeds in 2025, which contributed 26.6% of the total IPO capital raised, and the IPOs of the banking sector were relatively subdued. NBFCs had better listing-day returns but were more volatile. The research concludes that IPO success is driven by strong fundamentals and brand equity and regulatory mandates, with implications on issuers, investors and policy-makers.

Keywords: IPO, Banking Sector, NBFC, Listing Performance, Indian Capital Market